Oil rises on signs of tight market

Oil prices rose on Friday, as signs of a tight market supported prices ahead of the US Memorial Day holiday weekend, the unofficial start of the peak summer demand season in the United States. Further, European Union countries are negotiating a deal on Russian oil sanctions that would embargo shipment deliveries but delay sanctions on oil delivered by pipeline to win over Hungary and other landlocked member states, officials said. Hungary’s resistance to oil sanctions – and the reluctance of a handful of other countries – has held up implementation of a sixth package of sanctions by the 27-member EU against Russia over its invasion of Ukraine. “We believe that a sharp contraction in Russian oil exports could trigger a full-blown 1980s style oil crisis and push Brent well past $150 per barrel,” Bank of America said in a note.

Published in The Express Tribune, May 28^th, 2022.

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