Oil is falling as fears of a supply crunch recede

Oil prices fell on Friday as supply concerns eased as European Union countries remained divided over an oil embargo on Russia, while the United States and its allies considered releasing more oil from storage to calm markets.

Brent crude futures fell 46 cents, or 0.4 percent, to $118.57 a barrel by 0529 GMT, after falling 2.1 percent in the previous session.

US West Texas Intermediate crude futures fell 47 cents, or 0.4 percent, to $111.87 a barrel, after losing 2.3 percent in the previous session.

Both contracts are heading to achieve their first weekly increase in three weeks, with Brent heading for a 10% jump, while West Texas Intermediate is heading for a 7% rise after greater fears of a supply crisis caused by the European Union’s thinking of boycotting Russian oil earlier in the day. the week.

OPEC sources said that officials believed that the European Union’s imposition of a possible embargo on oil from its ally Russia would negatively affect consumers and that the organization had informed Brussels of its concerns.

With global inventories falling to their lowest levels since 2014, analysts said the market was still unable to withstand any supply shock.