Oil prices rose by regarding 4% in Friday’s trading due to Russia’s threat to cut off oil and gas supplies, although crude futures recorded a decline for the second week, with interest rates rising sharply and the impact of restrictions imposed by China to limit the outbreak of “Covid-19” on expectations regarding demand .
Russian President Vladimir Putin threatened to stop Oil and gas export To Europe if you set a price cap. Prices also received support from this week’s OPEC + announcement of a slight production cut.
Brent crude futures rose $3.69, or 4.1%, to $92.84 a barrel. US West Texas Intermediate crude futures rose $3.25, or 3.9%, to $86.79 a barrel.
“In the coming months, the West will have to face the risks of losing Russian energy supplies and rising oil prices,” said Stephen Brennock of oil market brokerage BVM.
Under pressure from fears regarding recession and demand, Brent crude fell sharply following rising in March to near its highest level ever at 147 dollars in the wake of the Russian invasion of Ukraine.
Despite Friday’s jump, the two benchmarks are recording a weekly decline, as Brent fell by 0.2% over the course of the week, following it reached at some point to its lowest level since January.
West Texas Intermediate crude also recorded a weekly decrease of 0.1%.
At the present time, a new withdrawal from the strategic oil reserve exceeds the withdrawal by 180 million barrels announced by President Joe Biden months ago.
Prices were affected by the European Central Bank’s announcement this week of an unprecedented increase in the interest rate by 75 basis points, as well as more shutdowns related to “Covid-19” in China.
