Around 11.25 am, the September contract of Brent on the Intercontinental Exchange was at $99.80 per barrel, higher by 0.23% from its previous close. The August contract of WTI on the Nymex was unchanged at $96.30 a barrel.
Ravindra Rao, Head of Commodity Research at Kotak Securities said: “Crude recovered from lows gaining support from supply risks relating to Russia and OPEC and IEA’s warning about tighter global market and depleted inventories."
Volatility however continued during the day amid expectations of a further rate hike by the US Federal Reserve. On Wednesday, the Bank of Canada raised interest rates by 100 basis points.
Rao noted that the rise in oil stocks in the US due to a weaker global growth outlook and persistent weakness in the US equity market continue to weigh on the oil prices.
“Crude oil has managed to come off the lows however general bias may be on the downside unless risk sentiment improves," he said.
Further, accentuating fears of a global slowdown, the European Commission also has slashed its GDP forecast for 2022 and 2023 worrying the market over the demand outlook for oil.
