May 06, 2022 02:51AM ET
By: AnalysisWatch
Oil prices rose for a third straight session on Friday, shrugging off concerns about global economic growth, while worries about supply constraints supported prices ahead of the European Union's looming embargo on Russian oil.
At 02:41 AM ET, Brent crude futures were up 88 cents, or 0.8%, at $111.78 a barrel, while U.S. West Texas Intermediate (WTI) crude rose 84 cents, or 0.8%, to $109.10 a barrel.
The EU's proposal to phase out Russian crude oil supplies within six months and refined products by the end of 2022 caused a second straight weekly increase. In addition, all shipping and insurance services for the transport of Russian oil are to be banned. The plan still needs the unanimous support of the bloc's 27 countries.
Stocks on Wall Street fell on Thursday as investors worried that aggressive policies by central banks around the world aimed at curbing inflation could hurt growth.
The Bank of England warned Thursday that the U.K. faces a dual threat of recession and inflation above 10%, and raised interest rates by a quarter percentage point to 1%, the highest level since 2009.
On the supply side, the Organization of the Petroleum Exporting Countries, Russia and allied producers known as OPEC+ are expected to agree to another modest monthly increase in oil output.
OPEC+ ignored calls from Western countries for a bigger output increase and agreed in June to raise output by 432,000 barrels a day in line with its plan to lift the curbs implemented when demand was weighed down by the pandemic.
A US Senate panel has introduced a bill that could put OPEC members on trial for colluding to raise oil prices. Congress has failed to pass such a law in more than two decades, but lawmakers are concerned about rising inflation and high gasoline prices.
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