Demand Uncertainty Causes Oil To Dip – 28 April, 2022

Oil was lower on Friday as lockdowns in China weigh on the outlook of crude demand, while fears of a disruption as countries continue to sanction crude and products exports from Russia underpinned prices. Brent crude futures dipped 4 cents to $107.55 per barrel after rising 2.1% in the previous session. The front-month June contract expires later on Friday, and the more active July contract fell 30 cents to $106.96 a barrel. U.S. West Texas Intermediate crude dropped 49 cents, or 0.5%, to $104.87 a barrel after settling 3.3% higher the previous session. Both contracts are set to close the week higher, with WTI on track to post five straight months of gains, buoyed by the increased likelihood that Germany will join other European Union member states in an embargo on Russian oil. Despite this, oil prices have been volatile as Beijing has shown no sign of easing lockdown measures despite the impact on its economy and global supply chains.