Global crude oil prices rise amid volatile trade

At around 10.50 a.m., Brent’s November contract on the Intercontinental Exchange was at $89.90 a barrel, up 0.84% ​​from its previous close. West Texas Intermediate (WTI) October contract rose 0.65% to $84.08 a barrel on the NYMEX.

Analysts said Russia’s threat to halt oil and gas exports to Europe in the event of a price cap on energy exports from the country pushed up prices. However, demand concerns amid renewed lockdown in China, one of the world’s biggest importers of crude, limited gains.

Besides, a rise in US oil stocks could also impact the prices in the coming days, say analysts.

“We expect crude oil prices to remain volatile in today’s session,” said Rahul Kalantri, VP Commodities, Mehta Equities Ltd.

Oil prices rose from session lows and ended marginally higher on Thursday amid bargaining and Russia’s threat to halt oil and gas exports to European countries, said Sriram Iyer, Senior Research Analyst at Reliance Securities.

He said that the prices have remained bullish on the expectation of lower demand next week. “Looking ahead, crude oil prices may trade higher, but the upside may be shadowed amid building in inventory, concerns that aggressive rate hikes from central banks and China’s Covid-19 curbs will hurt demand.”

Investors will also keep an eye on the meeting of EU energy ministers in Brussels to discuss the ongoing energy crisis. The meeting, known as the European Energy Council, was convened by Czech Industry Minister Josef ikela in late August, when natural gas prices in the continental market continued to rise as a result of the Russo-Ukrainian War.

According to the European Commission, the goals of energy ministers are twofold – to exchange views on possible emergency measures to reduce high energy prices and to present the state of their country’s preparedness for next winter.

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