WTI crude price rose over 6% during and managed to return above the psychological barrier at $100 per barrel, recovering from a 4% loss in the previous session, following the news that Shanghai eased some virus restrictions which is positive from the demand side. Also, OPEC lowered expectations regarding global oil consumption and supply this year and warned, if EU countries decide to introduce an embargo on Russian oil, it will be practically impossible to fill the shortages of this raw material on the market. The EU is reportedly drafting proposals for an oil embargo on Russia after unconfirmed news that chemical weapons might have been used in Mariupol. Putin today said talks were at a 'dead end', something that suggests a new offensive is imminent.
The demand forecast was clearly lowered. However, this mainly refers to Q2, which brings a lot of uncertainty due to the situation in Ukraine and China. Source: OPEC
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OPEC increases production marginally, which means that the pressure on prices due to the shortage of supply may persist. Source: OPEC
OIL.WTI broke above the upper limit of the descending channel and broke above the psychological level of $100 per barrel. Source: xStation5
