Traders noted U.S. natural gas prices were up despite a 7% drop in European prices and forecasts for milder weather and lower U.S. demand over the next two weeks than previously expected.
Crude oil stockpiles in the U.S. Strategic Petroleum Reserve fell to 538 million barrels, the lowest since 1987, data from the U.S. Department of Energy showed.
WTI was on track for its highest close since March 25 and its third weekly rise. Brent, however, remained set for its first weekly decline in three weeks.
IEA Executive Director Fatih Birol also said that the summer may be challenging for the oil market, while winter may be challenging for the gas market.
With continued releases of the U.S. Strategic Petroleum Reserve over next several months, “expect to be seeing some of those exported,” Kpler’s Smith said.
OPEC cited rising inflation and continued monetary tightening, and lowered this year’s economic growth forecast to 3.5% from 3.9%, adding upside potential was “quite limited.”
Moscow’s sanctions came just a day after Ukraine halted a gas transit route, blaming interference by occupying Russian forces, the first time exports via Ukraine have been disrupted since the invasion.
“Prices are going to continue to move on up especially if the European Union comes to an agreement to phase out Russian oil purchases over the balance of this year,” said Andrew Lipow, president of Lipow Oil Associates in Houston.
The arrangement to receive U.S. LNG supplies was agreed at a meeting between Bulgaria Prime Minister Kiril Petkov and U.S. Vice President Kamala Harris in Washington, the government said.
“I’m not concerned about it for a basic reason there is a debate on NOPEC in the U.S., we need to wait and see,” said Suhail al-Mazrouei, UAE’s energy minister.