Oil prices rose on Thursday, affected by concerns about tight supplies as the European Union considers a possible ban on Russian oil imports that would further tighten the noose on global oil trade.
The rise also comes after the publication of US data on an unexpected decline in crude stocks in the United States.
Brent crude futures rose $1.53 to settle at $108.33 a barrel, after having earlier reached a high level of $109.80, while West Texas crude futures rose $1.60 to settle at $103.79, having earlier reached to A high level at $105.42, according to CNBC.
Buyers also reacted to the ongoing outages in Libya, which is losing more than 550,000 barrels per day of oil production due to the blockade of major export fields and ports.
The Organization of the Petroleum Exporting Countries said earlier on Thursday that “OPEC +” showed a commitment to achieving stability in the oil market and restoring solid foundations for the oil market.
“OPEC” added that commodity prices, supply chain bottlenecks and logistical restrictions related to the pandemic are fueling inflation.
The European Union is still considering a ban on Russian oil, and US Treasury Secretary Janet Yellen said the bloc needed to be careful about imposing a full ban on Russian energy imports because it could cause oil prices to rise.
China’s demand outlook continues to cast a shadow over the market, as the world’s largest oil importer slowly eases strict coronavirus restrictions that have affected manufacturing activity and global supply chains.
This rise also came after the US Department of Energy published data on crude reserves in the United States, and according to the data, commercial oil reserves (excluding the strategic reserve) fell in the week ending on April 15 by 8 million barrels, or 1.9%, to 413.7 million barrels.
The data deviated from analysts’ expectations, who pointed to an increase in black gold reserves by 2.5 million barrels. The data also showed a decrease in gasoline stocks by 0.8 million barrels to 232.4 million, and distillates by 2.7 million barrels to 108.7 million.