Oil rises 3% as Shanghai eases restriction, OPEC warns Russian crude is irreplaceable

• Financial

Both US and UK crude oil futures’ prices jumped on Tuesday with both benchmarks trading over 3 per cent higher as of late-afternoon Asia-Pacific trading hours, as growing likelihoods of a demand-crunch in China eased after Shanghai had relaxed some pandemic norms, while a latest OPEC warning that around a 7-million-bpd (barrels per day) of crude oil which is expected to rub out due to sanctions on Russian energy by far-right EU and N.

American leaders, could not be replaced. In the latest flashpoint of an alarming bell from the Saudi-led 14-member OPEC (Organization of Petroleum Exporting Countries), the oil producing nations had warned on Monday that about 7 million bpd of oil or around 8 per cent of entire global crude supply would be lost due to sanctions on Kremlin.

More worrisomely, OPEC cautioned that the volume of crude oil which is expected to evaporate due to sanctions on Russian energy, will be replaceable, echoing the tones of energy ministers of Qatar and UAE, which effectively had added to a bullish breeze in the day’s commodity market.

Aside from that, Shanghai issued a statement on Monday saying that it was going to classify more than 7,000 residential unit as lower-risk areas, as there had been no new pandemic cases over past two weeks, offsetting angsts of a potential supply disruption due to the worst pandemic outbreak in China since the Wuhan variant back in the early-2020s.

Oil leaps after Shanghai curbs restriction, OPEC says Russian crude irreplaceable

Citing statistics, in the day’s late-afternoon Asia-Pacific trading, US WTI (West Texas Intermediate) crude oil futures’ prices were trading 2.95 per cent higher to $96.42 a barrel, while Brent crude jumped over 3 per cent to $100.93 a barrel after hitting an intra-session high of $101.79 per barrel earlier in the day.

Meanwhile, addressing to a highly volatile crude oil futures’ market, founder of oil market analysis provider Vanda Insights, Vandana Hari said, “Market sentiment is in see-saw mode, both on the supply and the demand front”.