Oil prices have rallied back above $100 U.S. a barrel as Russia’s invasion of Ukraine intensifies
and a COVID-19 outbreak rages in China.
West Teas Intermediate (WTI) crude, the U.S. standard, rose $6.31 U.S. to $100.60 U.S. a
barrel in New York trading, while Brent crude oil, the international benchmark, gained $6.16
U.S. to $104.64 U.S. a barrel.
The oil market has seen a tumultuous period of trading since late February, moving in a range
of more than $5 U.S. a day.
Shanghai, China has eased lockdowns for some housing complexes, but most people remain
confined to their homes. Authorities have indicated they will reimpose restrictions if virus cases
climb. Meanwhile, the Russian president said peace talks with Ukraine are “at a dead end.”
The Energy Information Administration (IEA) added more bullish sentiment to oil markets by
lowering its forecast for U.S. crude output growth in 2022 and 2023 as shale producers grapple
with higher production and labor costs.
Even with the recent gains, the oil market’s structure has softened markedly in recent weeks.
Concerns about over supply have eased with some Russian barrels finding their way into the
market.
A planned release of emergency reserves and China’s demand worries have helped calm
prices, and pressured differentials for supplies from the Middle East to West Africa.
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