Oil extends gains as investors weigh Russian ban, China outlook

Oil extends gains as investors weigh Russian ban, China outlook

Oil advanced for a third day, bookending another tumultuous week of trading as investors weigh the prospect of a European Union ban on Russian crude imports and uncertainty over China’s virus resurgence.

West Texas Intermediate futures rose above $107 a barrel, but are still set for the first weekly decline in three. Some EU nations said the bloc may have to consider delaying the ban on Russian oil if it can’t get Hungary to agree on the embargo. Beijing authorities have denied rumors that the capital will go into lockdown, as virus restrictions in Shanghai drag on.

Oil is up more than 40% this year as economies rebound from the pandemic, although China’s virus outbreak and Russia’s war in Ukraine have contributed to choppy trading since late February. Global benchmark Brent crude remains in a bullish backwardation structure, signaling a tight market.