Oil Fluctuates as Traders Weigh Threats to Russian Energy Flows
(Bloomberg) -- Oil swung between gains and losses as the U.S. and European Union looked set to announce plans to reduce the region’s reliance on Russian fossil fuels to raise the consequences for Moscow for its invasion of Ukraine.
West Texas Intermediate fluctuated above $112 a barrel after losing more than 2% on Thursday. U.S. President Joe Biden may on Friday announce a plan to boost U.S. shipments of natural gas to Europe after the bloc shied away from further curbs on Russian oil imports given opposition from nations including Austria. Over the week, crude is still on course for an advance.

Oil has rallied over the past four months, and hit the highest since 2008 in early March as the invasion roiled already-tight commodity markets. In response, the U.S. and U.K. have moved to bar Russian oil, and many western energy companies are also choosing to shun the nation’s crude. Buyers in Asia, including China and India, appear to be soaking up some of those barrels.
“The market has taken some comfort in the fact that it is looking unlikely that we see an EU ban” on oil, said Warren Patterson, head of commodities strategy at ING Groep NV. However, “there will still be plenty of noise about further sanctions or oil bans in the days and weeks ahead; this uncertainty means that the market will likely continue to trade in a volatile manner.”
A supply halt that helped lift oil earlier this week is easing. Kazakh Energy Minister Bolat Akchulakov said he expects one of three Black Sea moorings at the Caspian Pipeline Consortium terminal to resume work on Friday, letting tankers be loaded for export after a storm-driven disruption. Two other so-called single-point moorings are expected to resume in three weeks.
Oil markets remain backwardated, a bullish pattern marked by higher prices for near-term barrels over those further out. Brent’s prompt spread -- the difference between its two nearest contracts -- was $3.47 a barrel, up from 41 cents at the start of the year.
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