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Oil rises, defying stock market falls as supply concerns persist

06 May 2022 08:03 (UTC +04:00)

Oil prices climbed for a third straight session on Friday, shrugging off concerns about global economic growth as worries about tightening supplies underpinned prices ahead of an impending European Union embargo on Russian oil, APA reports citing Reuters.

Brent futures rose 84 cents, or 0.8%, to $111.74 a barrel by 0306 GMT, while U.S. West Texas Intermediate (WTI) crude climbed 80 cents, or 0.7%, to $109.06 a barrel.

Brent and WTI are on track to rise for a second week in a row, buoyed by the EU's proposal to phase out supplies of Russian crude oil in six months and refined products by the end of 2022. It would also ban all shipping and insurance services for transporting Russian oil. The plan still requires unanimous backing from the 27 countries in the bloc.

"There are concerns over global growth and what it could mean for oil demand," said Warren Patterson who heads ING's commodities research.

"However, the looming EU ban on Russian oil more than offsets this for now, and so should limit the downside for prices."

Wall Street stocks tumbled on Thursday as investors worried that aggressive central bank policies around the world aimed at tamping down inflation could shackle growth.