Brent Crude: futures rose more than 1% to above $109 per barrel on Friday, gaining some ground following sharp losses earlier this week, amid concerns of further supply disruptions from Russia.
The prospect of an EU ban on Russian oil continued to buoy prices, with tensions escalating further this week after Moscow imposed sanctions on European units of state-owned Gazprom.
Meanwhile, the UK oil benchmark is still down about 3% this week on fears that high inflation, weaker global growth and China’s Covid curbs would dampen demand.
Rising US interest rates also drove the dollar to 20-year highs, pressuring crude prices as a stronger dollar makes oil more expensive for buyers holding other currencies.
An IEA report released Thursday highlighted the dueling factors in the market, saying rising oil production in the Middle East and the US and a slowdown in demand growth are “expected to fend off an acute supply deficit amid a worsening Russian supply disruption.