Technology is the key topic of discussion on the first day of WDS
Oil prices rose above $110 a barrel on Friday but were heading for their biggest weekly decline since November as traders factored in the possibility of further bans on Russian crude and increased supply of other producers.
Brent crude rose 2.7% to hit $112.23 at 12:10 p.m. Riyadh time, but was forecast for a weekly decline of 5.2% after hitting a 14-year high of $139.13 on Monday.
US benchmark WTI was up 2% at $108.09, on track for a weekly decline of 6.6% after touching $130.50 on Monday.
Prices soared earlier in the week as the US and UK both announced embargoes on Russian crude, but eased later in the week as the EU made it clear that she was not going to follow their example.
“Both contracts could well drop significantly below $100 a barrel from here on any news perceived to ease supply disruptions,” said OANDA analyst Jeffrey Halley.
Likewise, both contracts could easily reach over $115 in the event of negative headlines, he said.
The EU will not impose sanctions on Russian gas or oil, Hungarian Prime Minister Viktor Orban said in a video posted on his Facebook page on Friday, amid a summit of the bloc’s leaders in France.
“The most important issue for us has been settled favorably: there will be no sanctions that would apply to gas or oil, so Hungary’s energy supply is secure in the coming period,” Orban said.
Europe is heavily dependent on Russian energy supplies and imports around 3 million barrels a day of crude from its neighbor to the east.
In the short term, supply shortfalls are unlikely to be filled by additional production from members of the Organization of the Petroleum Exporting Countries and their allies, together referred to as OPEC+, given that Russia is part of the grouping. , said Vivek Dhar, an analyst at Commonwealth Bank.
Some OPEC+ producers, including Angola and Nigeria, have missed production targets in recent months, suggesting the group would struggle to make up for Russian supply losses.
However, the United Arab Emirates on Thursday became the first OPEC member to call on the alliance to increase oil production, citing the need for stability in energy markets for the good of the global economy.