Reuters, London
Thu Mar 17, 2022 08:25 PM Last update on: Thu Mar 17, 2022 08:32 PM
Industrial facilities of PCK Raffinerie oil refinery are pictured in Schwedt/Oder, Germany, March 7, 2022. Photo: Reuters
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Industrial facilities of PCK Raffinerie oil refinery are pictured in Schwedt/Oder, Germany, March 7, 2022. Photo: Reuters
Oil prices climbed 6% on Thursday after the International Energy Agency (IEA) said three million barrels a day (bpd) of Russian oil and products could be shut in from next month and despite the U.S. Federal Reserve’s decision to raise interest rates.
The supply loss would be far greater than an expected drop in demand of one million bpd triggered by higher fuel prices, the IEA said in a report on Wednesday.
For all latest news, follow The Daily Star’s Google News channel. Benchmark Brent crude futures gained $6.41, or 6.5%, to $104.43 a barrel by 1205 GMT. U.S. West Texas Intermediate (WTI) crude was up $5.95, or 6.3%, to $100.99 a barrel.
Both contracts fell the previous day, following an unexpected jump in U.S. crude stockpiles and signs of progress in Russia-Ukraine peace talks.
Morgan Stanley raised its Brent price forecast by $20 for the third quarter 2022 to $120 a barrel, predicting a fall in Russian production of about 1 million bpd from April.
The fall will more than offset a downward global demand revision of about 600,000 bpd, the bank said.
“Both supply and demand are hurting but supply is…
