Oil prices rose by the end of trading Thursday, and the international benchmark “Brent” crude closed above 108 dollars a barrel, and US crude approached 104 dollars.
And oil prices rose, affected by concerns about the tightening of supply, as the European Union is considering a possible ban on Russian oil imports that would further tighten the screws on global oil trade.
Brent crude futures rose $1.53 to settle at $108.33 a barrel, after having earlier reached a high of $109.80.
And US West Texas Intermediate crude futures rose $1.60, or 1.6 percent, to $103.79, after earlier reaching a high of $105.42.
Buyers also reacted to the ongoing outages in Libya, which loses more than 550,000 barrels per day of oil production due to the blockade of major export fields and ports.
Brent rose nearly 8% in the past seven trading days, but the rise came at a slow pace, in contrast to the rise that accompanied the movements in late February, when Russian forces entered Ukraine and in mid-March as well.
The European Union is still considering a ban on Russian oil, and US Treasury Secretary Janet Yellen said Thursday that the bloc needs to be careful about imposing a complete ban on Russian energy imports because it could cause oil prices to rise.
US crude exports rose to more than four million barrels per day last week, partially offsetting the Russian crude shortage, which was affected by US and European sanctions.
The oil market remains tight, with the Organization of the Petroleum Exporting Countries (OPEC) and allies led by Russia, collectively called “OPEC +”, struggling to meet production targets, and with US crude stocks falling sharply in the week ending April 15.
“With only two countries in the OPEC + alliance with significant spare capacity, the group is committed to a cautious approach in canceling production cuts associated with the epidemic,” a note from UBS said.
China’s demand outlook continues to cast a shadow over the market, as the world’s largest oil importer slowly eases strict restrictions imposed to combat COVID-19 that have affected manufacturing activity and global supply chains.