Oil rises as traders assess supply issues

Biden says G7 will revoke Russia’s most favoured nation trade status

BENGALURU:

Oil prices rose Friday but were still headed for a weekly decline as traders weighed headlines around Russia and Iran suggesting more possible supply disruptions, versus those promising remedies in a tight market.

Benchmark futures have soared since Russia’s invasion of Ukraine and hit their highest levels since 2008 at the start of this week but pulled back sharply over the last two sessions, as some producing countries signalled they may act to increase supply.

Brent crude futures rose $2.46, or 2.3%, to $111.79 a barrel by 11:49 AM ET (1649 GMT) after hitting a low of $111.74 earlier. US West Texas Intermediate (WTI) crude futures rose $3.09, or 2.9%, to $109.11 a barrel, rebounding from a session low of $104.48.

US President Joe Biden said the G7 industrialised nations will revoke Russia’s “most favoured nation” trade status, and announced a US ban on Russian seafood and diamonds. The United States had banned Russian oil purchases earlier in the week. 

Meanwhile, talks to revive the 2015 Iran nuclear deal on Friday faced the threat of collapse after a last-minute Russian demand forced world powers to pause negotiations for an undetermined time despite having a largely completed text. 

Published in The Express Tribune, March 12^th, 2022.

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