Oil Rises as New Russia Sanctions Outweigh Demand Worries

Oil Rises as New Russia Sanctions Outweigh Demand Worries

Oil futures rose on Wednesday, paring early losses, as the threat of new sanctions on Russia raised supply concerns, countering fears of weaker demand following a build in US crude stockpiles and Shanghai's extended lockdown.

Brent crude futures were up 49 cents, or 0.5%, at $107.13 a barrel as of 0657 GMT, having fallen to $105.06 earlier in the session.

US West Texas Intermediate futures climbed 21 cents, or 0.2%, to $102.17 a barrel, after dipping to as low as $100.37 in an early trade.

The United States and its allies on Wednesday prepared new sanctions on Moscow over civilian killings in northern Ukraine, which President Volodymyr Zelenskiy described as "war crimes" demanding commensurate punishment. Russia denied targeting civilians.

"Concerns grew again over supply tightness as United States and Europe are stepping up sanctions on Russia," said Toshitaka Tazawa, an analyst at Fujitomi Securities Co Ltd.

Proposed EU sanctions, which the bloc's 27 member states must approve, would ban buying Russian coal and prevent Russian ships from entering EU ports. Britain also urged G7 and NATO nations to agree a timetable to phase out oil and gas imports from Russia.

The growing supply concerns erased earlier price falls due to a stronger dollar, which makes oil