NextGen Day

Oil prices rose on Wednesday as a result of supply concerns, including a move by the European Union to restrict Russian oil and a warning from oil-producing countries that major supply difficulties may arise after demand rebounds from the coronavirus disease 2019 (Covid-19) collapse.

At 0706 GMT, international benchmark Brent crude was trading at USD104.78 a barrel, up 2.26 percent from the previous session’s close of USD102.46.

At the same time, the American benchmark West Texas Intermediate (WTI) was trading at USD101.94 per barrel, up 2.18 percent from the previous session’s close of USD99.76 per barrel.

The EU is now debating a Russian crude oil and petroleum product embargo, as well as restrictions on Russian oil and product shipping.

If approved, Hungary, Slovakia, and Czechia, which are all heavily reliant on Russian energy supplies, will have a longer transition period than the rest of the EU.

Bulgaria also opposed the measure, warning the EU that it would not support sanctions unless Russia’s oil sales were exempted from the proposed prohibition.

Following pressure from Greece, Cyprus, and Malta, more concessions on the sanctions package are expected, including the removal of limitations on EU tankers carrying Russian oil.

Meanwhile, Ukraine announced that it will halt gas flow via a transit point that supplies nearly a third of the fuel routed from Russia to Europe via Ukraine.

Saudi Arabia’s and the United Arab Emirates’ (UAE) energy ministers cautioned on Tuesday that “consistently low investment in conventional energy sources risks” leaving the globe short of spare production capacity for crude oil, processed products, and natural gas.

When the globe fully recovers from the Covid-19 demand collapse, UAE Energy Minister Suhail al-Mazrouei claimed OPEC+ may not be able to guarantee enough supply.

The prolonged Chinese blockade continues to increase demand-side risks for investors.

The lockdown in Shanghai, according to Fitch Ratings’ latest Economics Dashboard, will worsen global supply-chain tensions and inflation concerns.

Late Tuesday, the American Petroleum Institute (API) announced its estimate of a 1.6 million-barrel increase in US crude oil stockpiles, compared to the market’s forecast of a 457.000-barrel decline.

The increase in stocks is expected to signify a reduction in petroleum demand in the United States, the world’s largest oil consumer.

Save/Share this story with QR CODE

---

Disclaimer

This article is for informational purposes only and does not constitute endorsement of any specific technologies or methodologies and financial advice or endorsement of any specific products or services.

📩 Need to get in touch?

📩 Feel free to Contact NextGenDay.com for comments, suggestions, reviews, or anything else.

---

We appreciate your reading. 😊Simple Ways To Say Thanks & Support Us:
1.) ❤️GIVE A TIP. Send a small donation thru Paypal😊❤️
Your DONATION will be used to fund and maintain NEXTGENDAY.com
Subscribers in the Philippines can make donations to mobile number 0917 906 3081, thru GCash.
3.) 🛒 BUY or SIGN UP to our AFFILIATE PARTNERS.
4.) 👍 Give this news article a THUMBS UP, and Leave a Comment (at Least Five Words).

---

AFFILIATE PARTNERS

World Class Nutritional Supplements - Buy Highest Quality Products, Purest Most Healthy Ingredients, Direct to your Door! Up to 90% OFF.
Join LiveGood Today - A company created to satisfy the world's most demanding leaders and entrepreneurs, with the best compensation plan today.

---