Oil Jumped 7% Amid Warnings Of A Shortage Of Supplies From Russia

Industrial facilities at the PCK Raffinerie refinery in Schwedt an der Oder, Germany on March 7, 2022. The company receives crude oil from Russia via the Druzhba pipeline. REUTERS/Hannibal Hanschke

LONDON, 17 March. Oil prices rose more than 7% on Thursday after the International Energy Agency (IEA) said production of three million barrels per day of Russian oil and petroleum products could be halted from next month, and despite the US Federal Reserve’s decision to raise interest rates.

Supply losses will be much larger than an expected one million bpd drop in demand caused by higher fuel prices, the IEA said in a report released Wednesday. More

Brent futures rose $7.47, or 7.6%, to $105.49 a barrel by 1427 GMT. US West Texas Intermediate (WTI) rose $6.85, or 7.2%, to $101.89 a barrel.

Morgan Stanley raised its Brent oil price forecast by $20 in the third quarter to $120 a barrel, forecasting a fall in Russian production by about 1 million bpd from April.

The fall more than offsets a decline in global demand of around 600,000 bpd, the bank said.

“Both supply and demand are suffering, but supply is currently suffering more and a tough oil market is to be expected in the next two quarters,” SEB said in a statement.

Prices fell in the previous session after government data showed that US crude inventories rose 4.3 million barrels last week, while analysts had expected a fall of 1.4 million barrels. More

The oil market largely ignored the decision by the US Federal Reserve on Wednesday to raise interest rates by one quarter of a percentage point, as expected.

Sentiment improved slightly after China announced policies to boost financial markets and economic growth, while a decline in new COVID-19 cases in China raised hopes that restrictions would be lifted to allow factories to resume production. .

Additional report of Muyu Xu in Beijing; Editing by Jason Neely and Marguerite Choi

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