Oil market shows signs of recovery

The price of oil continues to rise on Friday amid uncertainty about the imposition of a European embargo on oil supplies from Russia. Some EU countries believe that it is necessary to postpone the embargo on Russian imports if Hungary still does not support this ban.

An additional influence on price dynamics is exerted by the situation in China, where the incidence of Covid-19 has declined.

The current Brent oil quote is $108.87 per barrel. The daily high was marked at $109.72. The cost of North American WTI oil is located near $107.30 (the daily maximum is $108.12 per barrel).

Investors also drew attention to the forecast of the International Energy Agency (IEA), according to which the decline in the supply of Russian oil on the world market in the second half of the year may reach 3 million barrels per day. In April, Russia had already reduced production by almost 1 million b/d, which led to a reduction in global supplies by 710 thousand b/d (to 98.1 million b/d).

At the same time, pressure on the oil market is exerted by fears that a rapid tightening of monetary policy by world central banks will provoke an economic downturn and a subsequent decline in demand for energy resources.