Calendar An icon of a desk calendar. Cancel An icon of a circle with a diagonal line across. Caret An icon of a block arrow pointing to the right. Email An icon of a paper envelope. Facebook An icon of the Facebook "f" mark. Google An icon of the Google "G" mark. Linked In An icon of the Linked In "in" mark. Logout An icon representing logout. Profile An icon that resembles human head and shoulders. Telephone An icon of a traditional telephone receiver. Tick An icon of a tick mark. Is Public An icon of a human eye and eyelashes. Is Not Public An icon of a human eye and eyelashes with a diagonal line through it. Pause Icon A two-lined pause icon for stopping interactions. Quote Mark A opening quote mark. Quote Mark A closing quote mark. Arrow An icon of an arrow. Folder An icon of a paper folder. Breaking An icon of an exclamation mark on a circular background. Camera An icon of a digital camera. Caret An icon of a caret arrow. Clock An icon of a clock face. Close An icon of the an X shape. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Comments An icon of a speech bubble, denoting user comments. Ellipsis An icon of 3 horizontal dots. Envelope An icon of a paper envelope. Facebook An icon of a facebook f logo. Camera An icon of a digital camera. Home An icon of a house. Instagram An icon of the Instagram logo. LinkedIn An icon of the LinkedIn logo. Magnifying Glass An icon of a magnifying glass. Search Icon A magnifying glass icon that is used to represent the function of searching. Menu An icon of 3 horizontal lines. Hamburger Menu Icon An icon used to represent a collapsed menu. Next An icon of an arrow pointing to the right. Notice An explanation mark centred inside a circle. Previous An icon of an arrow pointing to the left. Rating An icon of a star. Tag An icon of a tag. Twitter An icon of the Twitter logo. Video Camera An icon of a video camera shape. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Information An icon of an information logo. Plus A mathematical 'plus' symbol. Duration An icon indicating Time. Success Tick An icon of a green tick. Success Tick Timeout An icon of a greyed out success tick. Loading Spinner An icon of a loading spinner.

Oil extends gains as investors weigh Russian ban, China outlook

© Bloombergoil opec+
Oil pipes run into the ground at the Enbridge Inc. Cushing storage terminal in Cushing, Oklahoma, U.S., on Wednesday, March 25, 2015. Photographer: Daniel Acker/Bloomberg

Oil advanced for a third day, bookending another tumultuous week of trading as investors weigh the prospect of a European Union ban on Russian crude imports and uncertainty over China’s virus resurgence.

West Texas Intermediate futures rose above $107 a barrel, but are still set for the first weekly decline in three. Some EU nations said the bloc may have to consider delaying the ban on Russian oil if it can’t get Hungary to agree on the embargo. Beijing authorities have denied rumours that the capital will go into lockdown, as virus restrictions in Shanghai drag on.

Oil is up more than 40% this year as economies rebound from the pandemic, although China’s virus outbreak and Russia’s war in Ukraine have contributed to choppy trading since late February. Global benchmark Brent crude remains in a bullish backwardation structure, signalling a tight market.

“Risks are increasing that Brent crude will once again test the upside of its recent range around $116 a barrel,” said Jeffrey Halley, a senior market analyst for Oanda Asia Pacific Pte. “The squeeze on diesel supplies and distillates globally is another supportive factor.”

Investors are assessing the impact of shrinking American fuel stockpiles ahead of the summer driving season, along with the prospect for aggressive monetary tightening after the US consumer-price index for April increased more than analysts were expecting. The war in Ukraine has fanned inflation globally.

Prices
WTI for June delivery rose 1.1% to $107.33 a barrel on the New York Mercantile Exchange at 9:44 a.m. in Singapore.
Futures are down 2.2% this week.
Brent for July settlement gained 1.3% to $108.85 a barrel on the ICE Futures Europe exchange.
Brent’s prompt timespread was $1.50 in backwardation compared with $1.34 at the start of the week

EU nations said a delay to the Russian oil ban would allow the bloc to proceed with the rest of a proposed sanctions package. Governments are still aiming for a deal on the full package, including a phased-in oil ban, by Monday, when foreign ministers meet in Brussels, according to diplomats.

Russia’s oil revenues are up 50% this year even as many buyers shun its crude due to the invasion, with the EU the largest market in April, the International Energy Agency said in its monthly report on Thursday.

Recommended for you

More from Energy Voice

Latest Posts