Oil prices rose 6% on Thursday after the International Energy Agency (IEA) said the market could lose 3 million barrels per day (bpd) of Russian oil and products starting next month. .
The rise also comes despite the Federal Reserve’s decision to raise interest rates.
The loss of supply would be much larger than an expected drop in demand of 1 million bpd triggered by higher fuel prices, the IEA said in a report last Wednesday.
Brent crude futures gained $5.85, or 5.97%, to $103.87 a barrel at 9:25 am ET. U.S. crude was up $5.48, or 5.77%, to $100.52 a barrel.
Both contracts tumbled the previous day, following an unexpected jump in US crude inventories and signs of progress in Russia-Ukraine peace talks.
Morgan Stanley raised its Brent price forecast by $20 for the third quarter of 2022 to $120 a barrel, predicting a drop in Russian production of around 1 million bpd from April.
The drop will more than offset a downward revision in global demand of around 600,000 bpd, the bank said.
“Both supply and demand are taking a hit, but supply is more, and a tight oil market for the next two quarters is expected,” bank SEB said.
Source: CNN Brasil
I am Sophia william, author of World Stock Market. I have a degree in journalism from the University of Missouri and I have worked as a reporter for several news websites. I have a passion for writing and informing people about the latest news and events happening in the world. I strive to be accurate and unbiased in my reporting, and I hope to provide readers with valuable information that they can use to make informed decisions.
