Oil prices to hover $100 on supply disruption fear

Oil prices to hover $100 on supply disruption fear

Brent and US West Texas Intermediate (WTI), two international benchmarks, sustained an upward trend last month and rose 1.5 per cent and 6.4 per cent, respectively, reflecting their fifth straight monthly increases. Brent crude futures, which rose $1.99, or 1.9 per cent, to $109.58 a barrel during the intra-day trading in London ended at $109.34 a barrel on Friday while WTI rose $1.40, or 1.3 per cent, to $106.76 in late trading ended at $104.69 per barrel.

Analysts and market experts said crude prices have been buoyed by the supply disruption fears as well as increased likelihood that Germany will join other European Union member states in an embargo on Russian oil.

“There are rising concerns about the conflict disrupting more supply. The market is getting prepared for the possibility that we’re going to see more supply cut off going into the weekend,” said Phil Flynn, an analyst at Price Futures Group.

The Organisation of the Petroleum Exporting Countries (Opec) and allies led by Russia are expected to stick to its existing deal and agree another small output increase for June when it meets on May 5, according to Reuters.

Under a deal reached in July last year, the group is set to increase