Sign up now for FREE unlimited access to Reuters.com Register HOUSTON, April 14 – Oil prices moved higher on Thursday after an early fall as investors closed positions ahead of the weekend and with the news that the European Union may gradually ban oil imports from Russia. Brent futures traded at $ 2.92 or 2.68%, at $ 111.70 a barrel. West Texas Intermediate futures closed at $ 2.70, or 2.59% higher at $ 106.95 a barrel. Both contracts recorded their first weekly profit in April. For several weeks, prices have been the most volatile since June 2020. Sign up now for FREE unlimited access to Reuters.com Register The New York Times reports that the European Union is moving towards a gradual ban on Russian oil, to give Germany and other countries time to arrange alternative suppliers. A gradual ban would force European buyers “to look for alternative sources, some of which will be addressed by the Strategic Petroleum Reserve in the near future, but in the future will require more supplies coming off the ground,” said Andrew Lipow. said Lipow Oil Associates in Houston. The International Atomic Energy Agency (IAEA) warned on Wednesday that about 3 million barrels a day of Russian oil could be shut down from May onwards due to sanctions or the voluntary avoidance of Russian cargo by buyers. read more Major global traders plan to cut crude and fuel purchases from Russia’s state-controlled oil companies in May, Reuters reported. read more Russia’s energy ministry says it is restricting access to its oil and gas production and export statistics. read more Trade would continue to be “somewhat nervous” as the war between Russia and Ukraine continues and as countries consider banning Russian supplies, said Price Futures Group analyst Phil Flynn. “The big question will be, how many people will want to be short of oil for the big weekend?” Traders also adjusted their position on Thursday as US crude options in May expire on Thursday. Forecasts for US oil production are being revised upwards, despite labor market and supply chain constraints, as higher prices trigger more drilling and drilling completion activity, according to industry experts. read more US oil rigs have doubled to 548 this week, the highest level since April 2020, energy services company Baker Hughes said in a report. The U.S. Energy Information Administration said Wednesday that U.S. oil reserves rose more than 9 million barrels last week, in part due to strategic stockpile releases. Analysts in a Reuters poll had predicted a construction of just 863,000 barrels. read more On the demand side, however, Chinese refineries are set to cut crude production by about 6% this month, a scale last seen in the early days of the COVID-19 pandemic two years ago, to ease expanded inventories. fuel during the recent lockdown, industry sources and analysts reported. Sign up now for FREE unlimited access to Reuters.com Register Report by Noah Browning in London, Mohi Narayan in New Delhi, Liz Hampton in Denver. Editing: Jason Neely, Kirsten Donovan, Jan Harvey, David Gregorio, Nick Macfie and Diane Craft Our role models: The Thomson Reuters Trust Principles.
