Crude oil appears to be trying to erase the losses it recorded this week, seeing the black commodity continue to display a recovery above the $ 100 a barrel price level by the weekend.
Towards the opening of the European session, US WTI and Brent crude futures were up around 2.3% trading at $ 106 a barrel and $ 109 a barrel, respectively.
Despite the rebound, but both benchmarks are on track to end this week’s trading with a decline of around 3%. Prices have fallen from a 14 -year high it reached last week.
The oil market movement was like a ‘roller coaster’ last week, driven by supply shortages due to sanctions on Russia, uncertainty in Iran’s nuclear talks and concerns about a surge in the Covid-19 case hurting demand.
Following developments on geopolitical issues, negotiating officials from Ukraine and Russia continued to hold meetings for peace talks but said their positions remained distant as the war entered its fourth week.
The slowdown has to some extent provided support for crude oil trading to record a recovery, coupled with warnings issued by the International Energy Agency (IEA) earlier.
The IEA says there is a possibility of supply shortages due to sanctions on Russian oil and this will drive energy prices higher.
