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Oil prices rose on Wednesday after falling nearly 10 percent in the previous two sessions, buoyed by supply concerns, as the European Union works to rally support for a Russian oil embargo and as Russian gas supplies to Europe halted through a major transit point in Ukraine.
The European Union has proposed a ban on imports of Russian oil, which analysts say will worsen supply shortages to the market and alter trade trends. The vote, which must be unanimous, has been postponed as Hungary sticks to its position against the ban.
By 0815 GMT, Brent crude prices rose $2.86, or 2.8 percent, to $105.32 a barrel.
US West Texas Intermediate crude reached $102.29 a barrel, up $2.53 cents, or 2.5 percent.
The oil price was also supported by optimism about the Chinese economy after commodity cost inflation eased at the gates of factories in China, with investors comforted by evidence of a decline in local infections with Covid-19, and oil also received support from the disruption of Russian gas supplies.
Oil prices surged in 2022 after the Russian war in Ukraine added to supply concerns, with Brent hitting $139 a barrel in March, its highest since 2008. Concerns about economic growth in China due to COVID-19 containment restrictions and US interest rate hikes were behind Oil prices fell this week.
