Oil holds near $100 as Ukraine talks, demand concerns limit gains

Oil storage containers are seen, amid the coronavirus illness (COVID-19) pandemic, in Los Angeles, California, U.S., April 7, 2021. REUTERS/Lucy Nicholson/Recordsdata

March 16 (Reuters) – Oil steadied above $100 a barrel in a risky session on Wednesday, because it got here beneath stress from indicators of progress in Russia-Ukraine peace talks and a closely-watched report that lower its forecast of world demand.

Ukraine’s president stated the positions of Ukraine and Russia have been sounding extra life like, however time was wanted. learn extra Russia’s overseas minister stated some offers with Ukraine have been near being agreed. learn extra

“Fears of a provide disruption have been tempered by tentative indicators of progress in ceasefire talks between Russia and Ukraine,” stated Stephen Brennock of oil dealer PVM.

“That stated, an finish to hostilities nonetheless looks as if a great distance off.”

Brent crude rose 46 cents or 0.5% to $100.37 a barrel by 1225 GMT, having traded as excessive as $103.70 earlier. U.S. West Texas Intermediate (WTI) crude added 59 cents or 0.6% to $97.03.

The worth falls additionally adopted the discharge of the Worldwide Power Company’s month-to-month report that lower its oil demand forecast for 2022. . A day earlier, the Group of the Petroleum Exporting Nations held its forecast regular.

Crude settled under $100 on Tuesday, the primary time since late February. Buying and selling has been risky since Russia’s invasion of Ukraine on Feb. 24, with costs hitting a 14-year excessive on March 7, however Brent has since fallen almost $40 a barrel.

The U.S. Federal Reserve is predicted to lift charges for the primary time in three years afterward Wednesday and provides steering on future tightening. Buyers predict the central financial institution to lift charges by not less than 25 foundation factors.

Oil had additionally come beneath stress this week from considerations of slowing demand in China because it takes measures in opposition to the Omicron coronavirus variant. These fears appeared to ease on Wednesday, as figures confirmed fewer new circumstances. learn extra

Moreover the Fed choice, in give attention to Wednesday would be the newest spherical of U.S. stock information due at 1530 GMT from the Power Data Administration. Analysts anticipate a 1.4 million barrel drop in crude shares.

Further reporting by Emily Chow; Enhancing by Barbara Lewis and Louise Heavens

: The Thomson Reuters Trust Principles.