Oil calms down after jumping in previous session due to Russia sanctions

On Wednesday, Russia sanctioned 31 companies based in countries that imposed sanctions on Moscow after Russia invaded Ukraine in February.

This created unease in the market just as Russian gas flows to Europe via Ukraine fell by a quarter. It was the first time that exports through Ukraine had been disrupted since the invasion.

Brent crude oil futures lost 9 cents at $107.42 a barrel 0013 GMT. WTI crude oil futures fell 13 cents to $105.58 a barrel.

Prices have risen more than 35% since the start of the year, buoyed by supply concerns following Russia’s invasion of Ukraine in February.

The European Union is still haggling over an embargo on Russian oil, which analysts say would further tighten the market and alter trade flows. The vote needs unanimous support, but was delayed as Hungary entrenched itself in opposition.

Price gains were limited by worries about demand destruction in China as it tries to curb the spread of the coronavirus.

“Until we see significant political support in China or policymakers adopt an alternative strategy to COVID (which seems highly unlikely), oil prices could remain capped in the near term,” said Stephen Innes, managing partner. at SPI Asset Management.

Source link -88