Oil prices increased on Wednesday, extending a cautiously rally this week as sign of a supply shortage outweighed disagreements between the European Union (EU) and Hungary over plans to impose restrictions on Russia, the second-largest crude exporter in the world. Following in the world, following its invasion of Ukraine.
At 0142 GMT, the price of Brent crude futures for the July settlement increased 7 cents, or 0.1 %, to $114.10 per barrel.
The price of a barrel of US West Texas Intermediate (WTI) crude for July delivery increased by 22 cents, or 0.2 %.
The market was supported by a larger-than-anticipated decline in US crude stockpiles in the week ending May 20, which came in the wake of record exports. Analysts claimed that the inventory reduction and the potential for an EU oil embargo in response to what Moscow refers to as its “special military operation” in Ukraine were driving up prices.
After Federal Reserve Chair Jerome Powell stated it was premature to think about spending rate hikes, the oil market maintained its advance even as stocks dipped and the dollar increased.
However, the tight COVID-19 lockdowns, growing worry about China’s declining fuel demand as the world’s largest oil importer, and concerns that inflation could hamper the global economy have moderated this week’s spike in oil prices.