“We would see an additional million barrels a day of Russian production at risk if relations with Europe worsen and an oil embargo is put in place, although we still see that as unlikely,” consultancy JBC Energy said in a note.
“The United States and its allies are planning new sanctions on more sectors of the Russian economy that are critical to sustaining its invasion of Ukraine, including military supply chains,” he added.
The market saw a strong sell-off in the previous session, after Russia promised to reduce military operations around kyiv, but reports of attacks continued on Wednesday.
Market attention has focused on tight supply after the American Petroleum Institute (API) said crude stocks fell by 3 million barrels in the week ended March 25, triple the drop they expected from average 10 analysts polled by Reuters.
To maintain market tension, major oil producers are unlikely to increase output above the agreed 400,000 barrels per day when the Organization of the Petroleum Exporting Countries and its allies, including Russia, jointly called OPEC+, meet on Thursday. , said several sources close to the group.
Nevertheless, Oil prices are under pressure from weakening demand in China due to tightening mobility restrictions and COVID-19-related lockdowns in multiple citiesincluding the financial center of Shanghai.
Source: Ambito
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