Brent Crude Oil Traded Above $104 Due To Tighten Supply

Brent Crude: futures traded above $104 per barrel on Wednesday, holding sharp gains from the previous session, amid concerns over supply tightness as peace talks between Russia and Ukraine appeared to have come to a dead end.

Russian President Vladimir Putin blamed Ukraine on Tuesday for derailing peace talks, and said Moscow would not let up on what it calls a “special operation” to disarm its western neighbor.

Latest data showed Russian oil and gas condensate production dropped below 10 million barrels per day on Monday, its lowest level since July 2020, as sanctions and logistical constraints disrupted trade.

Oil prices were also supported by reports of partial easing of Covid-related curbs in some pilot areas in China. At the same time, an industry report pointed to strong fuel demand in the US, with gasoline and distillate stocks each falling by more than 5 million barrels last week