Oil: Gather around 5% weekly losses by ‘jumping’ over 3%

Oil prices closed higher on Friday, narrowing weekly losses as traders weighed their concerns on global energy supplies in the face of another US move to step up pressure on Russia to halt its attack on Ukraine.

In particular, US President Joe Biden on Friday called on the United States to lift the trade regime of Russia’s “rather favorable state”, which would degrade Russia as a trading partner and pave the way for new customs duties on Moscow due to the invasion. in Ukraine.

The G7, meanwhile, is making a similar move. The G7 members, according to Reuters, said they remained determined to further isolate Russia from their economies and the international financial system. They also noted that they would make further efforts to reduce their dependence on Russian energy.

The European Union is also expected to take similar action, according to several foreign media outlets, as did Canada last week.

To cancel permanent normal trade relations with Russia, Biden will need congressional approval, but is not expected to meet with serious opposition.

In addition, the cessation of talks on Iran’s nuclear program and reports of a drone strike on a Saudi Aramco refinery in Riyadh by pro-Iranian Houthi rebels contributed to the rise in crude at today’s meeting.

In this climate, the West Texas Intermediate April delivery rose $ 3.31, or 3.1%, to settle at $ 109.33 a barrel on the New York Mercantile Exchange. In the week, however, fell 5.5%, according to FactSet. U.S. crude hit a 14-year high at $ 130.50 a barrel on Tuesday.

The Brent oil May delivery added 3.13%, or $ 3.41, to $ 112.75 a barrel on Friday. However, in weekly basis recorded losses close to 5%. And Brent hit a 14-year high this week, climbing to $ 139.13 on Tuesday.

The decline in black gold prices this week is largely due to the fact that the European Union, which is deeply dependent on Russian energy, will not join the United States and the United Kingdom in banning Russian oil imports.

In the short term, supply gaps are unlikely to be filled by additional production by OPEC + members, as Russia is a member of this cartel.

The Commonwealth Bank estimates that Brent will average $ 110 a barrel in the second and third quarters of the year, but sees oil ascending to as high as $ 150 a barrel in the short term.

“All this is very uncertain. It is very difficult to draw any conclusions,” he said.