Mar 25, 2022 04:46AM ET
By: AnalysisWatch
Oil prices weakened on Friday, with some supply worries softening on anticipation that crude exports from Kazakhstan's CPC terminal will resume, while the European Union maintained a split over whether to place an oil embargo on Russia.
At 4:00 AM ET, Brent was lower by $1.56, or 1.3%, at $117.47 a barrel, while US West Texas Intermediate (WTI) crude slid by $1.56, or 1.4%, to $110.78 a barrel, after both dropped by more than 2% in the preceding session.
Despite the drop, both benchmarks were on course for their first weekly advance in three weeks. Brent was on track to jump 9% and WTI 6% as broader supply fears sparked by Russia's invasion of Ukraine helped support the market.
The United States and the United Kingdom, both less reliant on Russian oil than the EU, have placed bans on imports of Russian crude. The EU, which is highly dependent on Russian oil and gas, faces a larger dilemma when it comes to applying sanctions against the sector.
OPEC sources said group officials believed a possible EU ban on Russian oil would hurt consumers and that the group had conveyed its concerns to Brussels.
With global inventories at their weakest since 2014, analysts say the market also remains vulnerable to a supply shock.
Worries were exacerbated after the Caspian Pipeline Consortium's terminal on Russia's Black Sea coast suspended shipments on Wednesday after it was struck by a severe storm.
However, according to Kazakh Energy Minister Bolat Akchulakov, exports from this terminal are expected to resume on Friday, using one of the three jetties affected by the storm.
To help ease supply fears, the United States discussed with its allies a potential further release of oil from the storage facilities. Sources told Reuters news agency that the United States will unveil an agreement to supply more American liquefied natural gas to Europe this year and next.
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