Oil prices fluctuated more than 6% during the week ending May 6, as investors kept tabs on the course of EU sanctions on Russian oil and the OPEC+ group monthly meeting on output production.
Brent crude was trading at $113.10 per barrel at 1115 GMT on Friday, posting a 6.4% gain from the Monday session that opened at $106.30 a barrel.
American benchmark West Texas Intermediate (WTI) registered at $110.37 per barrel at the same time on Friday, increasing 6.12% relative to the opening price of $104 a barrel on Monday.
Oil markets started the week on a negative note, pushed by slow economic growth concerns in China, the world's biggest oil importer, due to the COVID-19 pandemic.
As COVID-19 cases continue to rise in the country, authorities are trying to control the situation through lockdowns and isolation measures. Experts believe the government's strict zero-Covid strategy is putting a strain on the economy.
However, prices regained some losses on Tuesday, after Germany announced its support of a ban on Russian oil imports. 'Germany stands ready for new sanctions, including an oil embargo,' finance minister Christian Lindner said.
Oil prices push to $110 after the EU ban proposal on Russian crude oil, which would enter into force six months after adoption, and prohibit refined oil products by end of the year.
However, the increase in US commercial crude oil inventories contained the upward price trajectory, fueling demand concerns. Stocks increased 0.3% during the week ending April 29, according to data released by the Energy Information Administration (EIA) on Wednesday.
Inventories rose by 1.3 million barrels to 415.7 million barrels, against the market expectation of a decrease of 1.16 million barrels.
Finally, in a meeting, late Thursday, the world's biggest oil producers agreed to adhere to the current plan of increasing output by 432,000 barrels per day (bpd) through June.
Despite continued calls for increased production, the cartel said: 'continuing oil market fundamentals and the consensus on the outlook pointed to a balanced market.” The decision by the OPEC+ supported higher prices in an already tight oil market.
By Ebru Sengul Cevrioglu