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Oil: Oil rises as supply uncertainty persists

oil Futures rose in early trade on Tuesday as the potential for more sanctions following allegations of war crimes by Russian forces in Ukraine added to concerns deliver Disruptions while nuclear talks with Iran stalled.

Brent rough futures up $1.58, or 1.5%, to $109.11 a barrel, while US West Texas Intermediate futures were up $1.61, or 1.6%, to $104.89 a barrel by 0028 GMT.

Both contracts briefly rose by more than $2 a barrel after Japan Industry Minister Koichi Hagiuda said the International Energy Agency (IEA) was still working out details for a planned second round of coordinated oil releases.

Futures were down more than 3% Monday on threats of more sanctions against Russia and after a pause in Vienna over talks to revive the Iran nuclear deal that could see more Iranian barrels traded market. Iran accused the United States of breaking off talks.

Consultancy firm Wood Mackenzie appreciated and pushed ahead with EU members on Monday economies including Japan and South Korea, could “exchange” about 650,000 barrels per day of Russian crude of similar grades and volumes. These would come primarily from Middle Eastern volumes normally bought by China and India.

India’s state-owned Mangalore Refinery and Petrochemicals Ltd. bought 1 million barrels of Russian Urals for shipment in May, in a rare move spurred by the deep discount on offer.

“Global crude oil trade is being rebalanced by ‘crude swapping’ between ‘self-sanctioning’ advanced economies and developing markets,” said Alex Sun, a consultant for Wood Mackenzie, noting that a heavy discount for Russian Ural barrels has created a buying opportunity for China to replenish dwindling strategic reserves.

https://economictimes.indiatimes.com/markets/commodities/news/oil-rises-as-uncertainty-around-supply-persists/articleshow/90653414.cms Oil: Oil rises as supply uncertainty persists

Adam Bradshaw

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