Oil extends gains as supply worries outweigh lockdown measures in China

Oil prices rose for a fourth day on Friday as fears of Russian supply disruptions outweighed the impact of anti-Covid-19 lockdown restrictions in China, the world’s largest crude importer, casting a shadow on demand.

By 0639 GMT, Brent crude futures rose 88 cents, or 0.8 percent, to $108.47 a barrel, after rising 2.1 percent in the previous session.

West Texas Intermediate crude rose 55 cents, or 0.5 percent, to $105.91 a barrel, after rising 3.3 percent on Thursday.

The two crudes are heading towards ending the week on the rise and recording gains for the fifth consecutive month, supported by the increased chances of Germany joining other countries in the European Union in banning Russian oil.

But oil prices are still volatile, as China has shown no sign of easing the closure measures, despite their impact on its economy and global supply chains.

Regarding supplies, six sources in the OPEC+ cartel of oil producers told Reuters on Thursday that the cartel would likely abide by the current production agreement and would agree on another small increase in production for June at its meeting on May 5.