Oil up on supply fears as investors await EU ban on Russian oil products

Oil prices rose on Tuesday over investors’ supply jitters as the oil markets are awaiting the next round of sanctions on Russian oil products slated for Feb. 5 amid fears of global recession after IMF warned of a ‘tough 2023.’

International benchmark Brent crude traded at $86.17 per barrel at 10.21 a.m. local time (0721GMT), up 0.30% from the closing price of $85.91 a barrel in the previous trading session.

American benchmark West Texas Intermediate (WTI) traded at $80.57 per barrel at the same time, a 0.38% gain after the previous session closed at $80.26 a barrel.

Tight supply projections were the main driver of the price upticks as on Feb. 5, when the next set of EU sanctions against Russian oil products is scheduled to go into force.

It will impact refined petroleum products like diesel.

It comes two months after the G7 decision to cap the price of Russian oil at $60 per barrel and the EU ban on Russian seaborne crude exports on Dec. 5.

However, lingering fears of global economic recession continue, especially amid unfolding travel restrictions on Chinese people after the country eased its 2-year-long strict pandemic measures.

The decision of the world’s largest oil importer and the second largest oil consumer country raised concerns for a new wave of infections because the number of cases have been on the rise.

International Monetary Fund Managing Director Kristalina Georgieva warned on Monday that 2023 would be ‘tougher’ than last year as the US, EU and China see their economies slow.

• American benchmark West Texas Intermediate