US crude oil has risen by 5%

On Wednesday, the price of the benchmark US oil contract WTI surpassed $105 per barrel due to fears about Russia’s war in Ukraine, China’s Covid shutdown, and slowing US inflation.

WTI jumped more than 5% to $105.26 per barrel at 1345 GMT, a day after nearly dipping below $100 per barrel. Brent North Sea crude, the international benchmark, increased 4.7 percent to $107.23.

Oil rose on promises of Chinese economic stimulus, as factory-gate inflation in China dropped and investors found solace in evidence of decreasing domestic COVID-19 infections.

The price of petroleum has risen in 2022 as a result of Russia’s invasion of Ukraine, with Brent hitting $139 in March, the most since 2008. Worries about growth driven by China’s COVID limits and interest rate rises in the United States have spurred this week’s drop.

The backdrop of restricted supply, which big producers believe is partially due to insufficient investment, remains supportive of oil. On Tuesday, the UAE’s energy minister emphasised these worries.

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