Workers walk while oil pumps are seen in the background at the Uzen oil and gas field in the Mangistau region of Kazakhstan, November 13, 2021. REUTERS / Pavel Mikheev
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Houston, April 14 – Oil prices rose on Thursday after an early drop as investors covered short positions before the long weekend and with news that the European Union may impose a phasing out of Russian oil imports.
Brent futures rose $ 2.92, or 2.68%, to $ 111.70 a barrel. US futures in West Texas closed at $ 2.70, or 2.59% higher at $ 106.95 a barrel.
Both contracts recorded their first weekly profit in April. For several weeks now, prices have been the most volatile since June 2020.
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The New York Times reported that the European Union is moving towards adopting a phased ban on Russian oil to give Germany and other countries time to settle for alternative suppliers.
The phasing-out ban will force European buyers to “look for alternative sources, some of which will be met by strategic oil spills in the near future, but more out-of-ground supplies will be needed in the future,” said Andrew Lipow of Lipow Oil Associates in Houston. .
The International Energy Agency warned on Wednesday that approximately 3 million barrels a day of Russian oil could be shut down from May onwards due to sanctions or buyers who voluntarily avoid Russian cargo. Read more
The world’s major trading houses plan to cut purchases of crude oil and fuels from state-controlled oil companies in Russia in May, Reuters reported. Read more
Russia’s energy ministry says it is restricting access to its statistics on oil and gas production and exports. Read more
Trade would continue to be “somewhat nervous” as the war between Russia and Ukraine continues as countries weigh on banning Russian supplies, said Price Futures Group analyst Phil Flynn.
“The big question will be how many people will want to have some oil over the long weekend?”
Traders also adjusted their position on Thursday, as options for crude oil in the US in May expire on Thursday.
According to industry experts, US oil production forecasts are being revised upwards despite labor and supply chain constraints, as higher prices encourage more drilling and well completion activities. Read more
U.S. oil rigs rose two to 548 this week, their highest level since April 2020, energy services firm Baker Hughes said in a report.
The U.S. Energy Information Administration said Wednesday that U.S. oil inventories rose by more than 9 million barrels last week due in part to a release from strategic reserves. Analysts in a Reuters study expected only 863,000 barrels. Read more
However, on the demand side, Chinese refineries are ready to reduce raw crude productivity this month by about 6%, a scale last seen in the early days of the COVID-19 pandemic two years ago to ease leaking fuel stocks. during the recent blockades, industry sources and analysts said.
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Report by Noah Browning in London, Mohi Narayan in New Delhi, Liz Hampton in Denver; Edited by Jason Neely, Kirsten Donovan, Ian Harvey, David Gregorio, Nick McPhee and Diane Kraft
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