Brent futures were up 2.9% at $113.45 a barrel, while US West Texas Intermediate (WTI) crude rose 3.4% to $107.82.
Oil prices rose nearly 3% on Wednesday as another US crude stock fall signaled tight supplies and investors worried about new Western sanctions against Moscow as Russian forces marched on the outskirts of the Ukrainian capital. The bombing was continued.
On Tuesday, Russia pledged to reduce operations around Kyiv, which the West dismissed as a regrouping ploy by heavily inflicted invaders.
Jim Ritterbush, president of Ritterbush & Associates in Galena, said: “Once fooled, many traders who sell contracts in response to peace talks are unlikely to make the same mistake the next time after the Russia-Ukraine meeting with optimistic comments ” , Illinois.
Brent futures were up $3.22, or 2.9%, at $113.45 a barrel, while US West Texas Intermediate (WTI) crude was up $3.58, or 3.4%, at $107.82.
US crude reserves fell last week by more than expected by 3.4 million barrels, cutting inventory in the world’s top consumer by 410 million barrels, the lowest since September 2018, government data showed. [EIA/S]
Kepler principal oil analyst Matt Smith said, “U.S. crude inventories have shown another draw despite production ticking high and yet another solid SPR (Strategic Petroleum Reserve) issued in the commercial inventory,” noting that The crude draw was driven by increased refining activity.
After remaining stagnant for seven weeks, US crude production rose by 100,000 barrels per day (bpd) to 11.7 million bpd last week, while crude stocks in the SPR fell to their lowest level since May 2002, and Gulf Coast refinery utilization rose to its highest level since January. 2020.
Traders said a surprise rise in US gasoline and distillate stocks last week and lower demand for both products limited price gains.
The United States and its allies are planning new sanctions on more sectors of Russia’s economy, including military supply chains.
The Kremlin indicated that all of Russia’s energy and commodity exports could be priced in rubles, as President Vladimir Putin wants the West to feel the pain of sanctions.
In response to possible Russian gas supply cuts, Germany launched an emergency plan to manage the gas supply. Other European countries also took steps to conserve the gas.
However, sources said Russia plans to keep the contract currency for gas exports to Europe unchanged, but will seek final payment in rubles as one of the options for changing the currency of gas trading.
Keeping markets tight, major oil producers are likely to increase their set production target by about 432,000 bpd when OPEC+ – the Organization of the Petroleum Exporting Countries and allies including Russia – meet on Thursday, several sources close to the group said. said.
But weak demand in China is putting pressure on oil prices, as the country tightens mobility restrictions and COVID-19-related lockdowns in several cities, including the financial hub of Shanghai.
Meanwhile, US data shows private employers maintained a brisk hiring pace in March, prompting investors to worry that a potentially rapid rise in interest rates could stifle economic growth and fuel demand.
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