Oil pushes higher as array of supply risks eclipse China concern
BNN Bloomberg
Oil gained as a series of challenges to supply eclipsed concern about the lingering threat to energy demand from lockdowns in China.
Oil gained as a series of challenges to supply eclipsed concern about the lingering threat to energy demand from lockdowns in China.
West Texas Intermediate traded near US$103 in a week that has seen futures swing sharply in a range of about US$10. As the Ukraine war grinds on, European Union members are moving to cut dependence on Russian oil, with German Foreign Minister Annalena Baerbock saying the country plans to stop imports by year-end. At the same time, Russian output has fallen, and protests in Libya hurt supply.
Oil has been hugely volatile since the outbreak of war. After spiking above US$130, prices have retreated amid a liquidity crunch, with traders fleeing the market in the face of extreme volatility and onerous margin calls. Open interest in WTI futures continues to fall, indicating that the pullback in activity is ongoing.
“The oil market continues to be characterized by a tug-of-war between concerns about demand and concerns about supply outages,” said Carsten Fritsch, an analyst at Commerzbank AG. “This is also evident from the constant fluctuations in oil prices.”
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