Crude oil prices surged on Thursday to above $114 per barrel, approaching a 14-year high of $125 a barrel hit in March amid tight supply.
On Wednesday, EIA data showed a larger-than-expected drawdown in US crude inventories last week due to soaring exports, highlighting a tight global market.
Meanwhile, the EU continues to haggle with Hungary over banning oil imports from Russia, with European Councilor Charles Michel saying he is confident that an agreement can be reached before the council’s next meeting on May 30th.
Hungary is pressing for funds of about €750 million ($805 million) to upgrade its refineries and expand a pipeline from Croatia to enable it to switch away from Russian oil.
Still, the demand outlook remained clouded amid varying degrees of Covid-19 restrictions in China and lingering concerns about inflation driving a global economic slowdown.