# Oil prices extend gains with falling supplies in focus Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-04-13 Category: INVESTING Category URL: https://financedigest.com/category/investing Meta Title: Oil Prices Rise Amid Ukraine-Russia Deadlock & Weak Meta Description: Oil prices rose after peace talks stalled, China's economic data weakened, and Russia's oil output fell. OPEC cuts demand forecast amidst Ukraine crisis. URL: https://financedigest.com/oil-prices-extend-gains-with-falling-supplies-in-focushtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-04-13t014549z2lynxnpei3c019rtroptp4ukraine-crisis-usa-gasoline-1736815878117-compressed.jpg) By Ahmad Ghaddar LONDON (Reuters) -Oil prices extended gains on Wednesday after Moscow said peace talks with Ukraine had reached a dead end, heightening concerns of supply disruption, while weak economic data from China and Japan limited the rise. Brent crude was up $1.62, or 1.6%, to $106.26 a barrel by 1418 GMT and U.S. West Texas Intermediate (WTI) crude [futures gained](https://www.financedigest.com/dollar-gains-as-wall-street-retreats-on-future-fed-hikes.html "Dollar gains as Wall Street retreats on future Fed hikes") $1.25, or 1.2%, to $101.85. Both benchmarks climbed more than 6% on Tuesday. The downside for [oil prices](https://www.financedigest.com/oil-ticks-up-as-u-s-inflation-cools-but-prices-set-for-monthly-drop.html "Oil ticks up as U.S. inflation cools, but prices set for monthly drop") is limited,” said OANDA senior market analyst Jeffrey Halley. The [Russian comments on peace talks](https://www.financedigest.com/japan-insurers-in-talks-with-reinsurers-to-resume-coverage-in-russian-waters.html "Japan insurers in talks with reinsurers to resume coverage in Russian waters") and U.S. President Joe Biden accusing Russia of genocide reinforced the view “the Ukraine-Russia [situation will not be de-escalating any time](https://www.financedigest.com/the-pensions-deficit-abyss-the-time-to-review-your-situation-is-now.html "The pensions deficit abyss – the time to review your situation is now") soon,” Halley said. Russian President Vladimir Putin on Tuesday blamed [Ukraine for derailing peace talks](https://www.financedigest.com/u-s-ukraine-agree-to-launch-talks-to-upgrade-2008-trade-accord.html "U.S., Ukraine agree to launch talks to upgrade 2008 trade accord") and said Moscow would continue what it calls a “special military operation” to disarm its neighbour. [Crude futures also drew support from Russian oil](https://www.financedigest.com/oil-near-flat-as-us-crude-stock-draw-contends-with-economic-concerns.html "Oil near flat as US crude stock draw contends with economic concerns") and gas condensate production falling to below 10 million barrels per day (bpd) on Monday, its lowest since July 2020. The International Energy Agency (IEA) on Tuesday said it expected Russian [oil output](https://www.financedigest.com/uk-oil-gas-firms-to-leave-years-worth-of-output-in-ground-with-tax-hikes-report.html "UK oil, gas firms to leave year’s worth of output in ground with tax hikes-report") losses to average 1.5 million bpd in April, with losses growing to close to 3 million bpd from May. Western [sanctions against Russia](https://www.financedigest.com/russia-unleashes-rockets-after-mariupol-ceasefire-eu-eyes-oil-sanctions.html "Russia unleashes rockets after Mariupol ceasefire, EU eyes oil sanctions") and logistical constraints have hampered trade, people familiar with the data said on Tuesday. The Organization of the Petroleum Exporting Countries (OPEC), has said it would be impossible to replace [expected supply](https://www.financedigest.com/gsk-expects-us-launch-of-rsv-vaccine-with-no-supply-issues.html "GSK expects US launch of RSV vaccine with no supply issues") losses from Russia and that it would not pump more crude. Reports this week of a partial easing of some of [China’s tight COVID-19 lockdown measures also underpinned oil](https://www.financedigest.com/oil-rises-about-2-with-u-s-and-china-inflation-in-focus.html "Oil rises about 2% with U.S. and China inflation in focus") prices on the basis they could lead to increased demand. However, weak data from China and also Japan limited the [oil price rise](https://www.financedigest.com/oil-gains-after-iea-sees-demand-rising-to-record-high.html "Oil gains after IEA sees demand rising to record high"). China’s crude oil imports slipped 14% from a year earlier, extending a two-month slide, as strict coronavirus restrictions hit demand in the [world’s top](https://www.financedigest.com/top-10-fastest-bikes-in-the-world.html "Top 10 fastest bikes in the world") crude importer. Japan reported its biggest monthly [fall in core](https://www.financedigest.com/boes-mann-falling-headline-inflation-high-core-make-policy-difficult.html "BoE’s Mann: Falling headline inflation, high core, make policy difficult") machinery orders in nearly two years, dragged down by a steep drop in demand from IT and other service companies. OPEC on Tuesday cut its forecast for 2022 global oil demand growth, citing the impact of Russia’s invasion of Ukraine, rising inflation as crude prices soar and the [resurgence of the Omicron coronavirus variant in China](https://www.financedigest.com/618-shopping-festival-in-china-makes-a-resurgence.html "618 shopping festival in China makes a resurgence"). [OPEC expects global demand](https://www.financedigest.com/oil-prices-rebound-after-opec-upgrades-china-demand-outlook.html "Oil prices rebound after OPEC upgrades China demand outlook") to grow by 3.67 million bpd in 2022, down 480,000 bpd from its previous forecast. (Reporting by Ahmad GhaddarAdditional reporting by Sonali Paul in Melbourne and Isabel Kua in SingaporeEditing by David Goodman and Barbara Lewis) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---