WTI: crude Oil rose more than 1.5% to around $106 per barrel on Wednesday, after losing more than 8% over the previous two sessions,
As global supplies remain tight despite weakening demand from China and tensions in the Middle East. Major oil producers will meet to discuss their supply policy for May and the group has signaled it will stick to its existing plan and ratify an increase of 430,000 bpd in output despite crude flow disruptions due to Russia’s war in Ukraine. On the data front, the latest API report showed US crude stocks fell by 3 million barrels last week, triple the decline expected by analysts.
The Energy Information Administration will release official data later Wednesday. US crude prices have been rising for the past four months and hit the highest since 2008 at almost $126.42 per barrel on March 7th, as demand recovery from the coronavirus pandemic gathered pace while the war in Europe squeezed the already tight market.