Crude oil prices surged on Friday as markets perceived the crude oil supply shocks more dangerous than the anticipated downturn in demand for oil.
The sanctions on Russia in the aftermath of its invasion of Ukraine is expected to reduce the supplies of crude from Russia far more than the reduction in demand on account of the covid-19 curbs in China, the world’s biggest importer of crude.
Markets are also awaiting the results of the OPEC+ meeting next week to assess the planned increase in output in June, by the group of nations.
Prices are also surging amidst renewed fears of a ban on Russian oil by the E.U.
Brent Oil Futures for July settlement is currently trading at $108.84, up 1.47 percent from Thursday’s close of $107.26. The day’s trade ranged between a high of $109.16 and a low of $106.60.
West Texas Intermediate crude for June settlement on Friday traded between a high of $106.86 and a low of $104.58. It is currently trading at $106.56, having increased 1.14 percent from Thursday’s close of $105.36.
Natural Gas Futures for June settlement gained around 3 percent to $7.096, versus the previous close of $6.888.