Oil prices rose on Friday, as the European Union’s expected ban on Russian crude and the relaxation of restrictions by Covid-19 in China offset concerns about a slowdown in economic growth that would hit demand.
crude oil futures Brent for July delivery rose 51 cents, or 0.46%, to $112.55 a barrel, while West Texas Intermediate (WTI) for June delivery rose $1.02, or 0.91%, to $113.23 a barrel. The most active WTI contract, for July delivery, rose 0.7% to $110.66 a barrel.
This left the premium of the most active Brent contract over its WTI pair of USA
For the week, WTI crude posted its fourth consecutive weekly gain for the first time since mid-February, while Brent oil posted a weekly gain of 1% after falling around 1% last week.
“The risks still tilted upwards… given the reopening of China and the ongoing efforts for a Russian oil embargo by the EU,” said Craig Erlam, senior market analyst at OANDA.
In China, the city of Shanghai did not indicate any change in the expected end of the prolonged confinement for June 1, despite the fact that the first new cases of coronavirus were announced. Covid-19 out of the quarantined areas within five days.
The energy market expects the lifting of some coronavirus restrictions in Shanghai to boost demand. China It is the main importer of crude oil in the world.
Meanwhile, the EU hopes to reach an agreement on a proposal to ban imports of Russian crude that includes exceptions for member states that are most dependent on fuel from Moscowlike Hungary.
Big German companies are drafting a plan to use an auction system to help ration available supplies in case Russia cuts gas supplies, though some fear this could penalize smaller firms.
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