Brent Update

On Wednesday, May 4, according to the results of the day, Brent crude oil rose by 3.83%, to $109.99 per barrel. The growth of quotations was supported by fears of a reduction in supply on the market due to the oil embargo against Russia. The head of the European Commission, Ursula von der Leyen, proposed a phased ban on all Russian energy resources. The EU Council will consider a new package of sanctions on May 10. The oil market received additional support from the weakening of the dollar on Forex after the US Federal Reserve meeting.

The weekly report of the US Department of Energy showed an increase in oil reserves in the country last week by 1.3 million barrels, to 415.73 million barrels (the forecast was -600 thousand barrels). Inventories of gasoline decreased by 2.23 million barrels, distillates - by 2.34 million barrels. Their reduction was expected by 800 thousand barrels and 1.39 million barrels, respectively. Oil production in the US remained at the level of the previous week - 11.9 million bpd.

On Thursday, May 5, at auction in Asia, a barrel of Brent costs $110.44. The price went up from the symmetrical triangle. Buyers opened the way to the level of $114.80. If the price remains trading below the indicated level until the end of the week, then a re-test of $100 per barrel is likely. Today we expect quotes to rise to $112.50.