Brent Crude: futures steadied around $116 per barrel on Wednesday after a sharp intraday reversal that saw the benchmark end lower in the previous session.
As investors weighed an EU ban on Russian oil and Shanghai’s reopening against reports OPEC may suspend Russia from a production deal. Oil prices initially rallied on Tuesday
After EU leaders agreed in principle to cut 90% of Russian oil imports by the end of this year, as well as in anticipation of Shanghai’s reopening after a two-month lockdown.
However, crude prices turned sharply lower following reports that some producers were considering suspending Russia’s participation in a production deal of OPEC+
which could pave the way for other producers to pump more crude into markets. While there was no formal push for OPEC countries to pump more oil to make up for any potential Russian shortfall, some Gulf members had begun planning for an output increase sometime in the next few months.