Oil prices edged up on Friday after the slim progress in Russia and Ukraine peace talks raised the possibility of continued disruption to crude supply.
Subsequently, the Brent crude futures increased 1.24% or 1.32 points to $107.96 per barrel.
The international benchmark surged nearly 9.00% on Thursday, the most significant percentage gain since mid-2020.
Likewise, US West Texas Intermediate contracts strengthened 1.41% or 1.45 points to $104.48 per barrel. It followed an 8.00% jump yesterday.
Accordingly, these upturns extended their rally at the end of a third volatile week. However, both oil gauges will end the week 4.00% lower.
Moreover, benchmarks have dropped from 14-year highs last two weeks ago.
The volatile week was driven by the supply crunch from sanctions on Russia, stuttering nuclear talks with Iran, and dwindling oil stockpiles.
Additionally, worries about the possible hit in demand from the surge of COVID-19 cases contributed to the rollercoaster ride.
The West’s battleground setbacks and punitive sanctions did not cause any significant positive movement in the crisis.
A Moscow spokesperson commented that the major progress report in peace talks was incorrect, stoking a wave of oil buying.
Eventually, United States President Joe Biden has called Russian President Vladimir Putin a war criminal.
In line with this, analysts cautioned that Kremlin oil export losses would likely continue.
Meanwhile, US Secretary of State Anthony Blinken will visit top crude exporters UAE and Saudi Arabia later this month.
Correspondingly, the oil ask will presumably be close to the top of the agenda.
FGE, an energy consultancy, mentioned that on-land product stocks in key countries are 39.90 million barrels lower this period.
Inventories are lower from the 2017-2019 average and 45.00 million barrels down year-on-year. This report underscores the persisting tight market.
Oil rises as IEA urge less travel to cut oil use
Furthermore, the International Energy Agency urged consumers to reduce transport to cut oil use.
This call is in line with the deepening concerns about supply amid Russia’s invasion of Ukraine.
It underlines the urgency of a supply crunch brought on by sanctions and buyer aversion to Kremlin oil.
The recommendation of IEA could cut oil demand by 2.70 million barrels a day within four months.
Consequently, members of the organization and other countries have implemented power and transport fuel subsidies.
Last November, the Paris-based agency said that fossil fuel grants already soared by the highest annual rate ever in 2021.
It recorded a total of $440 billion incentives as governments worldwide tried to shield consumers from price hikes.The IEA asked governments to make the changes permanent. The adjustment will not be just for economic reasons but to combat climate change.
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