Oil prices moved higher on Friday but posted a second weekly loss in a row after a volatile trading week with no easy replacement for Russian barrels in a tight market.
Brent crude futures were up $1.29, or 1.2%, to $107.93 a barrel, one day after gaining nearly 9% in the largest daily percentage gain since mid-2020.
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US West Texas Intermediate (WTI) crude futures settled $1.72, or 1.7%, at $104.70 a barrel, adding to the 8% gain from the previous session.
Both benchmark contracts ended the week at around 4%, trading as low as $16. Prices hit a 14-year high almost two weeks ago, encouraging an encouraging period of profit-taking since then.
Russia said no deal has yet been reached after a fourth day of talks with Ukraine. Earlier this week there were already signs of progress.
“Previous expectations for a Ukraine/Russian ceasefire or agreement have faded as Russian military strikes on key cities continue to suggest additional financial sanctions against Russia,” said Jim Ritterbusch, president of Ritterbuch and Associates LLC in Galena. , Illinois.
Crude oil prices have taken a rollercoaster ride, spurred by the supply shortage from traders shunning Russian barrels and dwindling oil supplies. But prices are under pressure from demand concerns, with the number of COVID-19 cases rising in China, while stumbling nuclear talks with Iran have been a wild card in the market.
The volatility has scared some investors out of the oil market, which could exacerbate price swings.
Meanwhile, the OPEC+ producer group’s output fell even more below targets in February than in the previous month, sources said. The International Energy Agency said oil markets could lose 3 million barrels a day of Russian oil from April.
US oil producers have also shown significant restraints since the conflict in Ukraine began. US energy companies have cut the number of oil rigs operating in the country by 3 this week to 524, according to energy services firm Baker Hughes.
Consultancy FGE said onshore inventories in key countries are 39.9 million barrels lower for this time of year compared to the 2017-2019 average.
This post Crude Oil Stabilizes After US Fed Decision, But Posts Second Consecutive Weekly Drop was original published at “https://www.zeebiz.com/market-news/news-crude-oil-settles-up-post-us-fed-decision-but-posts-2nd-consecutive-weekly-decline-181162”