Oil rebounds on tight supply, prospects of new Russia sanctions


Oil prices clawed back heavy losses to rise more than 2% on Wednesday on supply tightness and the growing prospect of new Western sanctions against Russia even as signs of progress emerged from peace talks between Moscow and Kyiv.

Brent crude futures were up $2.6 at $112 a barrel while U.S. West Texas Intermediate (WTI) crude futures rose $2.7 to $106 a barrel, erasing a 1.6% drop on Tuesday.

Meanwhile the United States and its allies are planning new sanctions on more sectors of Russia’s economy that are critical to sustaining its invasion of Ukraine, including military supply chains.

According to market sources, the focus turned to tight supply after the American Petroleum Institute industry group reported crude stocks fell by 3 million barrels in the week ended March 25.

That was triple the decline that 10 analysts polled by Reuters had expected on average.

Also, Saudi Arabia and the United Arab Emirates, key members of OPEC+, said the group would not look to take action against Russia for its invasion of Ukraine, saying its aim was only to stabilise the market and not to engage in politics.

However, oil prices face pressure from weakening demand in China owing to tightened mobility restrictions and COVID-19-related lockdowns in multiple cities.

Abisola Adebayo is a Reporter/Presenter/Social Media Manager for Tv360Nigeria. She is a first class graduate of the department of Mass Communication at Fountain University, Osogbo. Abisola is currently running her Masters Degree at the University of Lagos. The Social Media savvy young lady is ambitious and driven, likes trying new things and sets new goals for herself. Always looking for an opportunity to do better and achieve greatness.

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