Oil companies focus on supply drop from Russia and Libya
Oil prices rose in volatile trade on Thursday amid supply concerns over the European Union's (EU) possible ban on Russian oil and the reduced supply from Libya.
Brent crude futures rose 97 cents, or 0.91%, to $107.77 a barrel at 0437 GMT. West Texas Intermediate (WTI) crude futures rose 86 cents, or 0.84%, to $103.05 a barrel, adding to a 19-cent gain in the previous session.
Analysts expect volatility to rebound soon as the market focuses on concerns about supply.
EU talks to ban or phase out Russian oil purchases, which have had the biggest impact on crude oil prices in recent days, have not yet concluded, limiting crude oil prices to a relatively narrow range on a daily consensus basis.
OPEC member Libya said on Wednesday that the country has lost more than 550,000 barrels per day of oil production due to blockades at major fields and export terminals.
The demand outlook in China continues the pressure on the market as the world's largest oil importer slowly loosens the stringent COVID-19 restrictions that have hit its manufacturing activities and global supply chains.
Kazakhstan said the Caspian Pipeline Consortium's Black Sea terminal could return to full capacity this week.
In a summary on the supply side, the resumption of Caspian Pipeline Consortium (CPC-Caspian Pipeline Consortium) crude oil deliveries, the ongoing cuts in Libya, and the possibility of further withdrawal of Russian crude oil is the current dynamics affecting the industry.
The oil market remains tight due to US crude inventories fell sharply in the week ended April 15 while the Organization of the Petroleum Exporting Countries and Russia-led allies are in the struggle to meet production targets.
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