Brent Crude: futures jumped more than 1% to above $104 per barrel on Wednesday after losing 9% in the previous two sessions, as supply side challenges reemerged, with the EU working on gaining support to ban Russian oil while major producers warned they may not be able to meet demand without further investment.
The EU has proposed to impose an embargo on Russian oil, but a vote has been delayed as some European countries voiced concerns that their economies could suffer.
Analysts said that the impact of the embargo could be limited if the ban is watered down, but prices could still go higher. Highlighting supply concerns further, UAE energy minister Suhail al-Mazrouei warned on Tuesday that when fuel demand recovers from the coronavirus pandemic, the OPEC+ may not be able to meet demand without further investment.
This followed the Saudi Arabian energy minister’s remarks that the world needs to pay attention not just to tight crude supply but energy capacity running short more broadly