Oil futures contracts closed sharply higher on Tuesday (12), reversing some of the drops they have seen in recent weeks, amid fears about demand, with new lockdowns in China, and the loss of United States strategic reserves. With the relief granted by release. Associate.
Global benchmark Brent oil contract for June edged up 6.25% at USD 104.64 per barrel. While US WTI for May rose 6.69% to USD 100.60 per barrel.
even with the jump Brent continues to decline around 0.4% in the month and WTI is practically stable over the period, Both oil benchmarks peaked in early March.
Crude oil traded up since the start of the day amid signs of an easing of restrictions in Shanghai, a partial easing of lockdown measures and allowing nearly half of the Chinese financial capital’s population to move .
Yesterday, the announcement of a lockdown in the Chinese city of Guangzhou to control the spread of the disease put pressure on oil prices. However, the measures were not as restrictive as those imposed in Shanghai last week.
Investors are also looking at warnings from the Organization of the Petroleum Exporting Countries (OPEC) that it would be “nearly impossible” to replace Russian oil in the event of a European Union (EU) embargo. Also, the cartel cut its forecast for global oil consumption and supply this year.
Nevertheless, oil prices are now trading around levels pre-Russia’s invasion of Ukraine in late February, with International Energy Agency (IEA) member states spending roughly the next six months in an effort to calm volatile prices. Planned to issue 240 million barrels.