# Oil prices fluctuate amid supply constraints and demand concerns Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-04-28 Category: INVESTING Category URL: https://financedigest.com/category/investing Meta Title: Oil Prices Steady Amid Russian Supply Concerns and China Meta Description: Stay updated on the latest developments in oil prices, from tightening Russian supplies to potential slowdowns in China's fuel demand. Get insights on URL: https://financedigest.com/oil-prices-fluctuate-amid-supply-constraints-and-demand-concernshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-04-28t005841z2lynxnpei3r018rtroptp4global-oil-1736815797569-compressed.jpg) By Ahmad Ghaddar LONDON (Reuters) -Oil prices steadied after trading in and out of positive territory on Thursday as investors weighed up tightening Russian supplies and the prospect of slowing fuel demand in China. Brent crude futures were down 9 cents at $105.23 a barrel by 1347 GMT. U.S. West Texas Intermediate crude rose 13 cents to $101.15. Both contracts had [gained 30 cents on Wednesday on concerns over tight global oil](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") supplies and another drawdown in U.S. distillate and gasoline stocks. On Thursday the contracts traded in a range of about $3 a barrel. The U.S. Energy Information Administration said that [crude stocks](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") rose by only 692,000 barrels last week, short of expectations, but distillate inventories including diesel and jet fuel fell to their lowest since May 2008. \[EIA/S\] Russian [oil production could fall](https://www.financedigest.com/shares-fall-with-oil-prices-amid-concerns-about-u-s-fed-rate-hikes.html "Shares fall with oil prices amid concerns about U.S. Fed rate hikes") by as much as 17% in 2022, according to an economy ministry document seen by Reuters, as the country contends with Western sanctions. Despite this [expected shortfall, the OPEC+ group of producers comprising the Organization of the Petroleum Exporting Countries and allies led by Russia is expected to agree another modest output](https://www.financedigest.com/uk-manufacturers-expect-output-to-fall-3-2-in-2023.html "UK manufacturers expect output to fall 3.2% in 2023") increase for June when it meets on May 5, sources told Reuters. Concern over [slowing demand](https://www.financedigest.com/michael-kors-owner-capri-cuts-forecasts-as-demand-slows-shares-plunge-20.html "Michael Kors owner Capri cuts forecasts as demand slows, shares plunge 20%") weighed on market sentiment, however. Fears of spluttering economic growth have sent the dollar to highs not seen [since March](https://www.financedigest.com/the-nasdaq-100-on-track-to-have-its-best-week-since-march-2010.html "The Nasdaq 100 On Track to Have its Best Week Since March 2010") 2020, equity markets are tepid at best, Chinese restrictions have not been erased from the back of investors’ minds and these have capped gains in crude oil,” said PVM Oil analyst Tamas Varga. The U.S. [dollar surged to its highest levels in two decades on Thursday propelled by widespread weakness](https://www.financedigest.com/stocks-u-s-dollar-gain-despite-surprise-weak-china-data.html "Stocks, U.S. dollar gain despite surprise weak China data") in its major rivals, such as the yen and the euro. A stronger dollar is usually bearish 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") which are priced in the greenback, as it makes it more expensive to holders of other currencies. In China, Beijing [closed some public spaces and stepped up COVID-19 checks at others as most of the city’s 22 million](https://www.financedigest.com/optable-closes-20-million-series-a-financing-broadens-investor-syndicate-in-new-round.html "Optable Closes Million Series A Financing, Broadens Investor Syndicate in New Round") residents embarked on more mass testing in an effort to avert a Shanghai-like lockdown. The most recent lockdown has disrupted factories and [supply chains](https://www.financedigest.com/5-steps-to-successful-supply-chain-finance.html "5 Steps to successful supply chain finance"), raising fears over the country’s economic growth. But Asia’s biggest oil refiner, Sinopec Corp, expects the country’s [demand for refined oil](https://www.financedigest.com/oil-prices-rebound-after-opec-upgrades-china-demand-outlook.html "Oil prices rebound after OPEC upgrades China demand outlook") products to recover in the second quarter as COVID-19 outbreaks are gradually brought under control. A slowdown in global growth owing to higher commodity [prices and an escalation in the Russia-Ukraine conflict could further exacerbate oil](https://www.financedigest.com/oil-prices-steady-as-news-of-saudi-russia-meeting-calms-investors.html "Oil prices steady as news of Saudi, Russia meeting calms investors") demand fears. The [global economy](https://www.financedigest.com/world-bank-warns-global-economy-could-easily-tip-into-recession-in-2023.html "World Bank warns global economy could easily tip into recession in 2023") will expand more slowly than predicted three months ago, according to Reuters polls of more than 500 economists. Median forecasts for global growth collected in this month’s [Reuters polls on more than 45 economies were chopped to 3.5% this year](https://www.financedigest.com/germany-home-prices-to-sink-nearly-6-this-year-reuters-poll.html "Germany home prices to sink nearly 6% this year – Reuters Poll") and 3.4% for 2023, down from 4.3% and 3.6% respectively in a January poll. The International Monetary Fund [forecasts 3.6% growth](https://www.financedigest.com/italy-slashes-2023-growth-forecast-but-sees-public-finances-improving.html "Italy slashes 2023 growth forecast but sees public finances improving") in both years. (Reporting by Ahmad GhaddarAdditional reporting by Mohi Narayan in SingaporeEditing by David Goodman and Susan Fenton) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---