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Thursday, May 19, 2022

Oil prices are falling as fears of a supply crisis dissipate

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Oil prices fell on Friday as supply concerns eased as European Union countries remained divided over the oil embargo on Russia, while the United States and its allies considered releasing more stored oil to calm markets. .
Brent crude futures were down 46 cents, or 0.4%, at $118.57 a barrel by 0529 GMT, after falling 2.1% in the previous session.

US West Texas Intermediate crude futures fell 47 cents, or 0.4%, to $111.87 a barrel, after losing 2.3% in the previous session.

Both contracts are on track for their first weekly rise in 3 weeks as Brent heads for a 10% jump while West Texas Intermediate heads for a 7% gain on heightened fears of a sparked supply crisis. for the idea of ​​boycotting the European Union. Russian oil earlier in the day.

OPEC sources said that “officials believe that the European Union’s imposition of a possible embargo on Russian oil will negatively affect consumers, and that the organization has informed Brussels of its concerns.”

With global inventories falling to their lowest levels since 2014, analysts said “the market is still unable to withstand any supply shock”.

“Equities are shrinking. This means, based on current data, that the tightness in the market will continue,” said Baden Moore, a commodities analyst at National Australia Bank.

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