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Oil Price Today: Oil prices recover from early losses as global supply fears linger

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Oil Price Today: Oil prices recover from early losses as global supply fears linger

TOKYO — Oil prices rose on Thursday, recovering from early losses, as lingering worries about tight global supplies overshadowed concerns about slowing economic growth highlighted by a slump in global stock markets.

July Brent crude futures were up 97 cents, or 0.9%, at $110.08 a barrel by 0220 GMT, after falling more than $1 earlier in the session.

U.S. West Texas Intermediate (WTI) crude futures for June rose 42 cents, or 0.4%, to $110.01 a barrel, recovering from earlier losses of more than $2. July WTI gained 56 cents, or 0.5%, to $107.60 a barrel.

Both benchmarks were down about 2.5% on Wednesday.

“Wall Street’s slump worsened sentiment in early trade as it highlighted concerns about weak consumption and fuel demand,” said Satoru Yoshida, commodities analyst at Rakuten Securities.

Asian shares followed Wall Street’s sharp sell-off on Thursday as investors fretted over rising global inflation, China’s zero-coronavirus policy and the war in Ukraine.

“Nevertheless, the oil market remains on a bullish trend as the EU’s upcoming ban on Russian crude imports is expected to further tighten global supplies,” Yoshida said.

The European Union this month proposed a new package of sanctions for Russia’s invasion of Ukraine. That would include a complete ban on oil imports for six months, but those measures have yet to be taken, and Hungary is one of the most vocal critics of the plan.

The European Commission on Wednesday unveiled a 210 billion euro ($220 billion) European plan to end its

Retrofit Russia’s fossil fuels by 2027 and use a pivot away from Moscow to speed up its transition to green energy.

In addition, U.S. crude inventories unexpectedly fell last week as refiners increased output in response to tight product inventories and near-record exports, forcing U.S. diesel and gasoline prices to record levels.

Both the East Coast and Gulf Coast are operating at more than 95% capacity, putting these refineries close to the highest possible operating rate.

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