Infections in Shanghai and Beijing eased on Tuesday, providing some cautious optimism for improvement after lockdowns caused inflation to rise in April.
The oil market has been affected in recent months by the covid-19 restrictions in China and Russia’s invasion of Ukraine. The war fueled inflation, driving up the cost of food and even fuel.
Oil is up more than 30% so far this year after economies recovered from the pandemic.
“In today’s session, the focus will be on the US. April inflation data and the weekly oil stocks update will be the focus of traders,” said Stephen Brennock, analyst at PVM Oil Associates. Ltd.
Russia relativizes the possible blockade
Russian Foreign Minister Sergei Lavrov said Wednesday that the country has “enough buyers” of energy resources “even without Western countries”, within the framework of the possible embargo on Russian oil discussed by the European Union (EU) as retaliation for the invasion of Ukraine.
Lavrov has guaranteed that the Russian authorities “will work” with these buyers and warned that they will let “the West pay much more than it pays Russia” for energy resources that it would have to buy from other countries.
“We will let you explain to your population why they are going to get poorer”he added at a press conference, according to the Russian news agency Interfax.
The High Representative of the EU for Foreign Policy, Josep Borrell, acknowledged on Tuesday “difficulties” to close an agreement on the sixth package of sanctions against Russia for the invasion of Ukraine that includes the veto on the import of Russian oil, although he pointed to next Monday to complete the round of sanctions.
Hungary maintains its reservations about the idea of imposing a veto on Russian oil and the president of the European Commission, Ursula von der Leyen, traveled to Budapest on Monday to try to unblock the sixth package of sanctions for the war in Ukraine.
Although he appreciated the progress made, von der Leyen said that more work is needed to close the final agreement and promised a video conference with regional actors to close ranks. The proposal provides for an embargo on all imports of Russian oil to the European Union by any means, with a transition period of six months in the case of crude oil and eight for refined products.
Source: Ambito
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