Oil prices rose for a second time, this time because of lower exports from Russia and concerns about global economic activity.
Brent crude oil experienced an 80 cents, or 1.4% rise. It settled at $83.02 a barrel. Meanwhile, US WTI crude futures were up 43 cents, or 0.6%, at $75.83.
On the anniversary of Russia invading Ukraine, Brent crude oil prices fell 14.4% from a year ago. On March 8, 2022, they were nearly $129 per barrel.
In the previous session, benchmarks ended about 2.4% higher on Russia’s long-term plans to cut oil exports from its western ports by 25.4% in March, more than an announced cut of 500,000 barrels per day.
Higher-than-expected US inventories continue to weigh on the oil demand outlook, but lower expectations for Russian production offset the effect.
US inventories are at their highest level since May 2021
In the last week of February, crude oil inventories rose by 7.62 million barrels to about 479 million barrels. And indications that Russian crude and refined products are being piled up on offshore tankers further weighed on the supply outcome.
Growth is getting stronger, and there’s not as much dark stock left from when Russia had a lot of oil. The bank also expects OPEC to cut production to limit the fall in oil prices.
Oil prices stayed mostly the same after a 4.2% drop the previous week. This was also because of rising interest rates, which could make the dollar stronger and reduce fuel demand.
Minutes from the US Federal Reserve’s last meeting indicated that most officials were concerned about inflation and tight labor market conditions, suggesting a tightening monetary policy. The dollar index went up because the prospect of more rate hikes was good. Now, it’s up over 2.53% for the month.
A dollar firm makes dollar-denominated goods more expensive for holders of other currencies.