Oil prices rose by about 4% in the Friday session, after gasoline prices in the United States recorded their highest level ever, while China seemed ready to ease Corona restrictions, and amid fears of a further decline in supplies if imposed. The European Union has imposed an embargo on Russian oil.
Brent crude futures rose $4.10, or 3.8%, to $111.55 a barrel upon settlement.
US West Texas Intermediate crude futures rose $4.36, or 4.1 percent, to $110.49 a barrel.
US gasoline futures rose to an all-time high, after inventories fell for the sixth consecutive week. This boosted refining profit margins to their highest levels since hitting a record in April 2020.
And the market witnessed volatility with the possibility of the European Union imposing a ban on Russian oil supplies, leading to a shortage of supply, and amid concerns about the faltering global demand.
Inflation and a sharp rise in interest rates pushed the US dollar to its highest level in 20 years, limiting oil price gains during the week, as the dollar’s rise makes oil more expensive to buy in other currencies.
But analysts continue to focus on a possible European Union embargo on Russian oil after Moscow imposed sanctions this week on European units of state-owned Gazprom and after Ukraine blocked a major gas route.
In China, authorities pledged to support the economy and Shanghai officials said the city would begin easing movement restrictions imposed to combat the Corona virus and open stores this month.
The European Union said that sufficient progress had been made to resume nuclear negotiations with Iran. Analysts said the deal with Iran could add another million barrels of oil supplies to the market per day.