WTI crude futures closed higher on Thursday (May 12), boosted by forecasts that global oil supplies will tighten following Ukraine’s closure of key gas routes to Europe. But markets are still under pressure from concerns about the impact of the extended Chinese lockdown on Shanghai.
- WTI crude futures were up 42 cents, or 0.4%, at $106.13 a barrel.
- BRENT crude futures were down 6 cents, or 0.05%, at $107.45 a barrel.
WTI crude futures closed higher after the European Union (EU) prepared sanctions against Russian oil and Ukraine shut down a Russian pipeline to Europe.
Ukraine has closed the main routes for gas transport to Europe on the grounds that it was attacked by Russian forces. As a result, Russian gas supplies to Europe fell by about a quarter on Wednesday. It was the first time gas supplies have been interrupted since Russia’s military incursion into Ukraine.
Russia will also suspend gas supplies to Finland today (May 13) in response to Finland’s preparations to join NATO, which Russia considers a security threat.
Investors remain concerned that China’s, the world’s largest oil importer, lockdown in Shanghai and parts of Beijing will hurt the economy and oil demand.
WHO Director-General Dr. Tedros Adhanom Ghebreyesus called on China to reconsider its coronavirus policy. He said the measures are not sustainable and will hurt China’s economy.
The Spot Market is Open
Friday, May 13, 2022