Oil rose on Wednesday, following a 9% drop over the previous two sessions, on supply concerns, as the European Union worked on gaining support for a ban on Russian oil and major producers warned they may struggle to fill the gap when demand improves.
Brent crude rose $1.42, or 1.4%, to $103.88 a barrel, while US West Texas Intermediate crude climbed $1.23, or 1.2%, to $100.99 a barrel. Both contracts fell more than $1 in early trade, Money.usnews.com reported.
Oil prices have slumped with commodities and share markets this week, on worries about the hit to economic activity from prolonged Covid curbs in China and sharp interest rate hikes in the United States.
The EU has proposed to impose an embargo on Russian oil, but a vote, which needs unanimous support, has been delayed as Hungary has dug in its heels in opposition and other European nations have voiced concerns that their economies could suffer.
The impact of the embargo could be limited if the ban is watered down to ease the concerns of eastern European members.
"Even if we do see some of the measures relaxed, it is likely that EU sanctions will still meaningfully reduce EU imports of Russian oil and refined products," Commonwealth Bank analyst, Vivek Dhar, said in a note.
