Oil prices are back in rise after a report on via free German to ban Russian oil

Oil prices rose after Thursday’s trading volatility as investors focused on strengthening Russian supplies and the possibility of slowing fuel demand in China, but a report that revealed that Germany abandoned its opposition to the European Union’s ban on imports of crude oil from Russia raised prices.

THE future Brent crude rose more than a dollar to $ 107 a barrel, while US West Texas Intermediate crude rose $ 2 to $ 104.

Both crude oils rose 30 cents on Wednesday on fears of low global oil supplies and a further decline in US distillate stocks.

The Wall Street Journal, citing government officials, reported that Germany is now ready to stop buying Russian oil, paving the way for an EU ban on Russian imports.

Prices fluctuated between gains and losses as the strength of the US dollar weighed on futures and traders considered the possibility of a reduction in supply from Russia and a containment of consumption. in China.

The US Energy Information Administration said crude oil inventories only increased by 692,000 barrels last week, well below expectations, but stocks of spirits, including diesel and jet fuel, fell to their lowest levels since May. 2008.

Russian oil production could decline by up to 17% in 2022, according to a document from the Russian economy ministry seen by Reuters, as the country grapples with Western sanctions.

Sources told Reuters that despite this expected decline, the OPEC + group, which includes the Organization of Russia-led Petroleum Exporting Countries and Allies, could accept another modest production increase for the month of June when it meets. on May 5th.

But concern over slowing demand weighed on market sentiment.

On Thursday, however, the dollar rose to a two-decade high, driven by the widespread weakness of its main rivals, such as the yen and the euro. A stronger dollar is usually a bearish factor for oil prices, as it makes it more expensive for holders of other currencies.

In China, Beijing has closed some public places and stepped up COVID-19 controls elsewhere, as most of the city’s 22 million residents have undertaken more test mass in an attempt to avoid a similar blockade in Shanghai. The latest closure disrupted factories and supply chains, raising concerns about the country’s economic growth.

But Asia’s largest refinery, Sinopec Corp., expects the country’s demand for refined petroleum products to recover in the second quarter as the COVID-19 outbreak is gradually brought under control.

A slowdown in global growth due to rising material prices prime and the escalation of the Russia-Ukraine conflict could exacerbate fears about oil demand.

According to Reuters polls of over 500 economists, the global economy is expected to grow slower than expected three months ago.

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