“Fears of a supply disruption have been tempered by signs of progress in talks between Russia and Ukraine,” said Stephen Brennock of oil broker PVM. “That said, the end of hostilities still seems a long way off.”
Brent crude was up $2.55, or 2.6%, at $102.46 a barrel by 0923 GMT. US West Texas Intermediate (WTI) crude added $1.34, or 1.4%, to $97.78 a barrel.
Oil trimmed gains after the International Energy Agency cut its forecast for oil demand for 2022. A day earlier, the Organization of the Petroleum Exporting Countries maintained its forecast.
On Tuesday, crude fell below $100 for the first time since late February. Trading has been volatile since the Russian invasion of Ukraine on February 24, with prices hitting a 14-year high on March 7, though Brent has fallen nearly $40 a barrel since then.
The US Federal Reserve is expected to raise interest rates for the first time in three years on Wednesday and give guidance on future adjustments. Investors expect the central bank to raise rates by at least 25 basis points.
The Oil has also come under pressure this week on concerns about slowing demand in China., which is taking strict measures against the omicron variant of the coronavirus. New cases of domestic transmission were almost halved on March 15 compared to the day before, the national health commission said.
In addition to the Fed’s decision, attention will turn on Wednesday to the latest round of US inventory data to be released by the Energy Information Administration. Analysts expect a 1.4 million barrel drop in crude stocks.
Source: Ambito
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