Futures for petroleum rose on Wednesday, paring early losses, as the threat of new sanctions on Russia raised supply concerns, countering fears of weaker demand following a build in U.S. crude stockpiles and Shanghai’s extended lockdown.
Brent crude futures were up $1.07, or 1%, at $107.71 U.S. a barrel, having fallen to $105.06 U.S. earlier in the session.
U.S. West Texas Intermediate futures climbed $1.21, or 1.2%, to $103.17 U.S. a barrel, after dipping to as low as $103.17 in early trade.
The United States and its allies on Wednesday prepared new sanctions on Moscow over civilian killings in northern Ukraine, which President Volodymyr Zelenskiy described as "war crimes." Russia denied targeting civilians.
Proposed EU sanctions, which the bloc’s 27 member states must approve, would ban buying Russian coal and prevent Russian ships from entering EU ports.
Britain also urged G7 and NATO nations to agree a timetable to phase out oil and gas imports from Russia.
Meanwhile, member states of the International Energy Agency (IEA) were still discussing how much oil they would together release from storage to cool markets, three sources told Reuters, adding that an announcement was expected in coming days.
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