Oil rises 7% amid warnings of Russian supply shortages

The industrial facilities of the PCK Raffinerie oil refinery are photographed in Schwedt/Oder, Germany, March 7, 2022. The company receives crude oil from Russia via the “Friendship” pipeline. Photograph: Hannibal Hanschek/Reuters

LONDON, March 17 – Oil prices jumped more than 7% on Thursday after the International Energy Agency (IEA) said three million barrels per day of oil and Russian products could be closed from next month, and despite a US Federal Reserve decision . Raising interest rates.

The International Energy Agency said in a report on Wednesday that the supply loss would be much larger than the expected drop in demand by 1 million barrels per day due to higher fuel prices. Read more

Brent crude futures rose $7.47, or 7.6 percent, to $105.49 a barrel by 1427 GMT. US West Texas Intermediate crude rose $6.85, or 7.2 percent, to $101.89 a barrel.

Morgan Stanley raised its forecast for the price of Brent crude by $20 for the third quarter to $120 a barrel, expecting a drop in Russian production by about one million barrels per day from April.

The bank said the decline would offset a downward revision in global demand of about 600,000 barrels per day.

SBB said, “Supply and demand are being affected, but supply is being affected more now, and it is expected that the oil market will be tight for the next two quarters.”

Prices fell in the previous session after government data showed US crude stocks rose 4.3 million barrels last week, versus analysts’ expectations for a 1.4 million barrel decline. Read more

The oil market largely ignored the US Federal Reserve’s decision on Wednesday to raise interest rates by a quarter of a percentage point, as expected.

Sentiment was boosted somewhat after China pledged policies to boost financial markets and economic growth while a decline in new COVID-19 cases in China spurred hopes of lifting lockdowns to allow factories to resume production.

Additional reporting by Muyu Shu in Beijing. Editing by Jason Neely and Margarita Choi

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