Oil prices grow on prospects of supply cuts

Global oil prices started growing on March 29 afternoon due to fears of a reduction in supply on the market, Report informs referring to the auction data.

The price of June futures for Brent crude rose by 1.12% to $110.72 per barrel, May futures for WTI rose by 0.75% to $106.75.

Analysts note the instability of the oil market due to the existence of multidirectional factors. So, on March 28, oil prices fell immediately by 4% due to expectations of a reduction in demand in China, where there is an increase in the COVID-19 incidence.

At the same time, the possibility of reducing the supply of oil remains due to sanctions imposed against Russia in the energy sector.

“The oil market remains highly volatile and it is still not clear who will make up for the expected shortfall due to the drop in Russia’s output,” said Jens Pedersen, a senior analyst at Danske Bank. “Hence, the selloff yesterday will likely prove short-lived.”