Oil prices rebound after heavy losses, amid fears of a lack of supply

On Wednesday, oil prices made up for the heavy losses incurred in the previous session, with attention focused on the short supply from Russia and Libya, while data showed a decline in US inventories last week.

Brent crude futures rose 66 cents, or 0.6 percent, to $ 107.91 a barrel by 0623 GMT, while the price of West Texas Intermediate crude futures, which expire on Wednesday, rose 46 cents, or 0.5 percent, to $ 103.02 a barrel.

Both fell 5.2 percent in volatile trade on Tuesday after the International Monetary Fund on the same day cut its global growth forecast by almost a full percentage point, citing the economic effects of Russia’s war in Ukraine and warning that inflation is now a “real and clear risk” in many countries.

Global oil prices have fluctuated, fueled by expectations of a production shortfall, after sanctions were imposed on Russia, the world’s second-largest oil exporter and one of Europe’s main suppliers.

But expectations of slowing global growth and continued lockdown measures due to Covid-19 in China have hurt demand in the world’s largest oil importer.

On the supply side, the production of the OPEC + group was 1.45 million barrels per day less than the target level in March, and Russia produced 300,000 barrels per day less than the target.

Libya’s National Oil Corporation declared force majeure at the Brega oil port on Tuesday, saying it was not able to fulfill its obligations to the oil market.

Market sources, citing figures from the American Petroleum Institute, said on Tuesday that US crude stocks fell by 4.5 million barrels in the week ending April 15, contrary to expectations of an increase.