Brent crude futures gained $3.96, or 3.9%US$104.65 a barrel and those of WTI in the United States rose $4.20, or 4.3%$102.73.
Wall Street’s major indices closed higherand recovered from losses suffered last week, linked to fears of a recession, while central banks aggressively raise interest rates to fight inflation.
“Russian oil supply is about to drop as the year goes on and it runs out of Western spare parts to maintain the fields, and the rest of OPEC has not been able to invest more in production capacity. I think the days of oil $100 will be with us for a while.”said Jeffrey Halley, senior market analyst at OANDA.
Traders are on the lookout for potential oil supply disruptions at the Caspian Pipeline Consortium (CPC), which has been ordered by a Russian court to suspend activity for 30 days.
In a sign that oil supplies may remain tight, Washington tightened sanctions against Iran on Wednesdaya member of OPEC, as additional pressure on Tehran as it seeks to revive a 2015 Iran nuclear deal.
Oil prices have fallen in recent weeks, highlighting fears of a sharp economic slowdown and an impact on demand for raw materials.
“Recession fears continue to grow and that obviously raises some concern about the outlook for demand.”said Warren Patterson, head of commodity research at ING.
Crude reserves in the United States increased by 8.2 million barrels last weekdue to rising refinery inventories, which reduced production, according to the Energy Information Administration.
However, refined products, the best indicator of US consumer demand, grew by 20.5 million bpd in the last week.
Source: Ambito
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