new Delhi: oil prices Roses rose on Friday, but were on track for their biggest weekly drop since November, after seeing fears of increased sanctions on Russian oil versus efforts to bring more supplies into the market from other major producers.
Brent crude futures climbed $2.48, or 2.27%, to $111.81 a barrel by 0747 GMT, after falling 1.6% in the previous session.
US West Texas Intermediate (WTI) crude futures rose $2, or 1.89%, to $108.02 a barrel after falling 2.5% on Thursday.
In a week of volatile trade talks of a Russian oil embargo, then a potential supply surge from Iran, Venezuela and the United Arab Emirates, while fighting escalated in Ukraine, Brent was on track for a weekly decline of 5.2%. $139.13 on Monday. US crude was down 6.6% after touching a high of $130.50 on Monday.
“Both contracts could well drop below $100 a barrel on any news easing supply disruptions,” said Jeffrey Haley, an analyst at OANDA.
Similarly, both contracts can easily rise above $115 in any negative headline, he said.
“It’s just that kind of market.”
Prices slashed this week after the EU was clear that it is heavily dependent on Russian energyThe United States and Britain will not join forces in imposing sanctions on Russian oil.
Russia, the world’s second largest crude exporter after Saudi Arabia, exports nearly three million barrels of crude oil per day to the OECD countries of Europe.
Commonwealth Bank analyst Vivek Dhar said that in the near term, excess production from the Organization of the Petroleum Exporting Countries and allies is unlikely to fill the supply gap, called OPEC+, given that Russia is part of the group.
“They are really politically bound by the structure,” he said.
In addition, some OPEC+ producers, including Angola and Nigeria, have struggled to meet their production targets, limiting the group’s ability to make up for the Russian supply deficit.
The Commonwealth Bank estimates that Brent will average $110 in the second and third quarters of this year, but the price could potentially climb to $150 in the near term.
“It is all very uncertain. It is very difficult to come up with a vision,” Dhar said.
Brent crude futures climbed $2.48, or 2.27%, to $111.81 a barrel by 0747 GMT, after falling 1.6% in the previous session.
US West Texas Intermediate (WTI) crude futures rose $2, or 1.89%, to $108.02 a barrel after falling 2.5% on Thursday.
In a week of volatile trade talks of a Russian oil embargo, then a potential supply surge from Iran, Venezuela and the United Arab Emirates, while fighting escalated in Ukraine, Brent was on track for a weekly decline of 5.2%. $139.13 on Monday. US crude was down 6.6% after touching a high of $130.50 on Monday.
“Both contracts could well drop below $100 a barrel on any news easing supply disruptions,” said Jeffrey Haley, an analyst at OANDA.
Similarly, both contracts can easily rise above $115 in any negative headline, he said.
“It’s just that kind of market.”
Prices slashed this week after the EU was clear that it is heavily dependent on Russian energyThe United States and Britain will not join forces in imposing sanctions on Russian oil.
Russia, the world’s second largest crude exporter after Saudi Arabia, exports nearly three million barrels of crude oil per day to the OECD countries of Europe.
Commonwealth Bank analyst Vivek Dhar said that in the near term, excess production from the Organization of the Petroleum Exporting Countries and allies is unlikely to fill the supply gap, called OPEC+, given that Russia is part of the group.
“They are really politically bound by the structure,” he said.
In addition, some OPEC+ producers, including Angola and Nigeria, have struggled to meet their production targets, limiting the group’s ability to make up for the Russian supply deficit.
The Commonwealth Bank estimates that Brent will average $110 in the second and third quarters of this year, but the price could potentially climb to $150 in the near term.
“It is all very uncertain. It is very difficult to come up with a vision,” Dhar said.