LONDON—Oil prices climbed on Tuesday as Shanghai’s relaxation of some COVID-19 restrictions eased concerns about Chinese demand.
Brent crude futures rose by $3.26, or 3.31 percent, to $101.74 a barrel at 1002 GMT while U.S. West Texas Intermediate was up $3.01, or 3.19 percent, at $97.30. Both contracts lost about 4 percent on Monday.
The European Union has yet to agree any embargo on Russian oil, but some foreign ministers said the option is on the table.
“The oil market is still vulnerable to a major shock if Russian energy is sanctioned, and that risk remains on the table,” wrote Edward Moya, a senior market analyst with OANDA.
Indian Oil Corp. (IOC), which bought Russian Urals in previous tenders, has removed the grade from its latest crude tender. President Joe Biden had told Indian Prime Minister Narendra Modi late on Monday that buying more oil from Russia was not in India’s interest.
IEA member nations are planning to release 240 million barrels over the next six months from May in an effort to calm the market.
While the release will ease immediate tightness, analysts suggested it will not solve the structural deficit caused by underinvestment and stocks will need to be replenished.
A preliminary Reuters poll showed U.S. crude oil inventories are likely to have risen by 1.4 million barrels in the week to April 8 after declining for three consecutive weeks.
The poll was conducted ahead of a report from the American Petroleum Institute due at 4:30 p.m. EDT (2030 GMT) on Tuesday.
