Mixed Oil On Russian Supply, Demand Concerns – By ASC

Next month’s WTI crude oil futures contract, which expires on Wednesday, rose 19 cents to close at $ 102.75, unchanged.

Oil settled virtually unchanged on Wednesday as broader concerns about economic growth and stagnant oil demand weighed on supply tightening. Brent crude futures were down 45 cents, or 0.4%, to close at $ 106.80 a barrel.

Next month’s WTI crude oil futures contract, which expires on Wednesday, rose 19 cents to close at $ 102.75, unchanged.

Oil prices have been supported by a tighter supply outlook after sanctions against Russia – the world’s second -largest oil exporter and major European supplier – over its invasion of Ukraine, which Moscow calls a “special operation.”

“With the Ukraine war escalating, the likelihood of a prolonged period of conflict increases and the potential for loss of Russian supply to the market increases,” said Jim Ritterbusch, president of Ritterbusch and Associates in Galena, Illinois.

The market was also supported by a government report showing U.S. crude oil stocks declined by 8 million barrels last week due to a surge in exports to a two -year high, Energy Information Administration data showed. [EIA/S]

However, both benchmarks fell about 5% on Tuesday after the International Monetary Fund cut its global growth forecast by nearly a full percentage point, citing the economic impact of Russia’s war on Ukraine and warning that inflation has become “an obvious danger and now “for many countries.

“Weakening growth and rising inflationary pressures mean only one thing: the ghost of stagflation depends on the global economy,” said PM analyst Stephen Greenock.

The continued coronavirus closure in China has also affected demand in the world’s major crude oil importers and burdened prices.

The European Commission is working to speed up the availability of alternative energy supplies to try to reduce the cost of Russia’s oil ban and persuade Germany and other EU countries to refuse to accept the move, EU sources told Reuters.

Meanwhile, various disruptions added to concerns about supply. Libya’s OPEC members have been forced to shut down production of 550,000 barrels a day because of a wave of sanctions at major oil fields and export terminals, the country’s National Oil Corporation (NOC) said.

The Organization of the Petroleum Exporting Countries and its allies, collectively known as OPEC+, produced 1.45 million barrels a day below its production target in March when Russian production began to decline after sanctions imposed by the West, a report from the producers alliance showed.

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(This story has not been edited by NDTV staff and is automatically generated from a syndicated feed.)

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