July 1, 2022

Dubai Week

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Concerns about higher oil prices and supply during closure control the impact of economic worries |  Market talk

Concerns about higher oil prices and supply during closure control the impact of economic worries | Market talk

Oil prices rose on Friday amid fears that a planned EU embargo on Russian oil and easing of corona virus locks in China could hurt demand, slowing economic growth.

Brent crude was up 0.46% at $ 112.55 a barrel, while WTI was up 0.9% at $ 113.23.

During the week, West Texas crude oil reached its fourth consecutive weekly gain for the first time since mid-February, and Brent crude rose about 1% after falling 1% last week.

During the week, U.S. crude was higher than Brent crude, for the first time in two years.

In China, Shanghai did not announce any change in plans to lock down the city on June 1, although the city announced the first new cases of the corona virus outside isolated areas in five days.

The energy market expects to remove some of the restrictions imposed by the corona virus in Shanghai to increase energy demand, and China remains the world’s largest crude oil importer.

The European Union (EU) hopes to reach an agreement on a proposed embargo on Russian crude imports, including cuts, to member states that rely heavily on Russian oil, such as Hungary.

“The prospects for an EU embargo will be announced soon after Germany succeeds in halving Russian oil imports by more than half,” the BCA said in a statement.

Large German companies are developing a plan to provide rations available in the event of a Russian gas cut, although some fear it could impose fines on smaller companies.

In the United States, U.S. energy companies added oil and natural gas equipment for the ninth week in a row this week, according to the Baker Hughes platform, with small producers often urging the government to increase production in response to higher prices.

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Rick numbers are an indicator of future production growth.