OIL HIGHER ON GLOBAL TRENDS

OIL PRICES rose about 4 percent on Friday as US petrol prices jumped to a record high, China looked ready to ease pandemic restrictions and investors worried supplies will tighten if the EU banned Russian oil.

Brent futures price rose $4.10, or 3.8 percent, to settle at $111.55 (about R1 801) a barrel. US West Texas Intermediate (WTI) crude climbed $4.36, or 4.1 percent, to settle at $110.49 a barrel.

That was the highest close for WTI since March 25 and its third consecutive weekly rise. Brent fell for the first time in three weeks.

US petrol futures soared to an alltime high after stockpiles fell last week for a sixth week in a row. That boosted the petrol crack spread – a measure of refining profit margins – to its highest since it hit a record in April 2020 when WTI finished in negative territory.

“There has not been an increase in (US) petrol storage since March,” said Robert Yawger, executive director of energy futures at Mizuho, noting petrol demand was poised to spike when summer driving season started on the US Memorial Day holiday weekend.

Automobile club AAA said US prices at the pump rose to record highs on Friday of $4.43 per gallon for petrol and $5.56 for diesel.

Oil prices have been volatile, supported by worries a possible EU ban on Russian oil could tighten supplies but pressured by fears that a resurgent Covid-19 pandemic could cut global demand.

This week, Moscow slapped sanctions on several European energy companies, causing worries about supplies.

In China, authorities pledged to support the economy and city officials said Shanghai would start to ease coronavirus traffic restrictions and open shops this month.

Global shares rose after a volatile week of trading, pushing up stock indices in the US. Pressuring oil prices during the week, inflation and rate rises propped up the dollar.