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Oil prices rose by more than a dollar per barrel at the end of the week’s trading, supported by increasing evidence of supply shortages in the coming months, and the intensification of the conflict between Russia and Ukraine, which would lead to a continued decline in supplies.
Brent crude futures rose $1.43, or 1.8%, to reach $81.07 a barrel upon settlement, while US West Texas Intermediate crude futures rose $1.42, or 1.9%, to reach $77.07 a barrel upon settlement, its highest level since April 25.
“Global supplies are beginning to decline and that could accelerate significantly in the coming weeks,” said Phil Flynn, an analyst at Price Futures Group. Prices may also be affected by the growing risks of war.”
Russia continued to bomb Ukrainian food export facilities for the fourth day in a row, seizing ships in the Black Sea, in an escalation of the conflict in the region since Moscow withdrew this week from the United Nations-brokered grain export agreement through the Black Sea.
And the US Energy Information Administration said, on Wednesday, that crude oil stocks shrank amid a jump in crude exports and increased refinery use. Meanwhile, investors welcomed the economic stimulus measures aimed at shoring up China’s sluggish economy.
Data from the world’s second largest oil consumer indicates that the government’s annual growth target of 5% will not be met.
