Oil edges lower as supply crunch fears ease, trading costs rise

Oil prices inched lower on Friday as supply concerns eased as countries in the European Union remained split on imposing an oil embargo on Russia while the United States and allies considered releasing more oil from storage to cool markets, News.Az reports citing Reuters. 

Brent crude futures fell 46 cents, or 0.4%, to $118.57 a barrel at 0529 GMT, after sliding 2.1% in the previous session.

U.S. West Texas Intermediate (WTI) crude futures fell 47 cents, or 0.4%, to $111.87 a barrel, having dropped 2.3% in the previous session.

Both contracts were headed for their first weekly gains in three weeks, with Brent on track for a 10% jump and WTI on course for a 7% rise amid broader fears of a supply crunch as the EU mulled a boycott of Russian oil earlier in the week.

OPEC sources said that officials believe a possible European Union ban on oil from its partner Russia would hurt consumers and that the group has conveyed its concerns to Brussels.

While the United States and Britain have targeted Russian oil, such an action poses a challenge for the EU, which relies on Russia for 40% of its gas.


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