Wednesday was no different, as London’s Brent world benchmark traded between $97.55 and $103.70, before settling at $98.02 a barrel, down $1.89, or 1.9%.
US West Texas Intermediate (WTI) crude in the United States ended down $1.40, or 1.5%, at $95.04 a barrel.
Last week’s frantic rally saw Brent briefly break above $139, on concerns over Russian supply. Brent is now more than $40 below that point and some analysts have warned this reflects too much confidence in an early end to the war.
The United States and other countries have imposed heavy sanctions on Russia since it invaded Ukraine three weeks ago. This has disrupted Russia’s oil trade of around 4 million to 5 million barrels of crude per day.
Brent rose 28% in six days and then fell 24% in the following six sessions, counting Wednesday.
Several factors have driven the turnaround, including modest hopes for a peace deal between Russia and Ukraine. and the faint signs of progress between the United States and Iran to resurrect a 2015 deal, which would allow the Islamic Republic to export oil.
Chinese demand is expected to slow due to an increase in coronavirus cases in that country, although the figures showed a lower number of new cases. and hopes of Chinese stimulus buoyed stocks.
US inventories grew 4.3 million barrels, against expectations of a dropwhile stocks at the Cushing, Oklahoma distribution center also increased, easing some concern about the low level.
The Federal Reserve raised interest rates in the United States for the first time in just over three years – by a quarter of a percentage point – as expected. The basic trajectory of the oil market did not change after the news.
Source: Ambito
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