Oil prices rose by a little less than 1%, this morning, Thursday, recovering from the losses recorded in early trading.
Crude prices received support from hopes about plans to ease the closure restrictions related to the Corona epidemic in Shanghai; Which may contribute to improving the demand for fuel.
On the other hand, continuing concerns about global supplies still outweigh concerns about slowing global economic growth.
Oil prices today
The price of Brent crude futures, the standard, for delivery next July, rose by 0.8%, or 85 cents, to reach $109.96 a barrel, at exactly 07:44 AM GMT (10:44 AM Mecca Al-Mukarramah).
Meanwhile, the price of future contracts for West Texas Intermediate crude, for delivery next June, increased by 0.3%, or 33 cents, to record $109.92 a barrel.
Oil prices were trading in the red range early in today’s trading; The benchmark crude fell by about one dollar, while the US crude fell by nearly two dollars.
Brent crude ended the session yesterday, May 18, 2022, with a decrease of approximately 2.5%, and West Texas Intermediate crude decreased by the same percentage, which coincided with sharp losses in global markets amid investors’ fears of accelerating global inflation and China’s current policy towards Covid-19 and war in Ukraine.
Signs of easing the lockdown restrictions, previously imposed to counter the outbreak in China, support oil prices.
Commodity analyst at Rakuten Securities, Satoru Yoshida, says the Wall Street slump has raised concerns in early trading; Where he stressed concerns about weak consumption and demand for fuel, according to Reuters.
However, oil markets are still maintaining an uptrend; The EU’s pending ban on Russian crude imports is expected to tighten global supplies, Yoshida said.
Earlier this month, the European Union proposed a new package of sanctions against Russia for its invasion of Ukraine.
This package is scheduled to include the imposition of a complete ban on oil imports from Moscow within 6 months, but the measure did not enter into force with the presence of opponents, led by Hungary.
Yesterday, Wednesday, May 18, 2022, the European Commission revealed a 210 billion euro ($220 billion) plan to end the old continent’s dependence on fossil fuels from Russia by 2027.
US oil stocks
US oil inventories decreased, during the past week, contrary to expectations, with an increase in crude inputs to refineries.
After withdrawing from the US strategic oil reserve, about 5 million barrels, in the week ending May 13, the total reached 538 million barrels, the lowest level since 1987.
According to the weekly report issued by the US Energy Information Administration; Gasoline stocks fell by 4.8 million barrels, while distillate stocks rose by 1.2 million barrels.
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