- On Wednesday, oil was steady after Russia cut gas supplies to Bulgaria and Poland. However, lingering concerns about Asian COVID-19 related lockdowns (especially in China) weigh on economic growth, and oil demand constrains the prices, writes Reuters.
- Brent crude futures rose $0.26, or 0.30%, to $105.25 a barrel by 0823 GMT. U.S. West Texas Intermediate crude futures gained 10 cents, or 0.10%, to $101.80 a barrel.
- Russian energy firm Gazprom (OTC: OGZPY) halted gas supplies to Bulgaria and Poland in a significant escalation of Russia's broader row with the West over its actions in Ukraine, which Moscow calls a "military operation."
- The dispute sent NYMEX ultra-low-sulfur diesel futures up more than 9% on Tuesday to $4.47 a gallon, a record close.
- The International Monetary Fund (IMF) warned that Asia faces a "stagflationary" outlook with the Ukraine war, a spike in commodity costs, and China's slowdown.
- China's central bank said it would step up monetary policy support as Beijing races to control the COVID-19 outbreak and avert a city-wide lockdown.
- Shanghai has been under lockdown for a month. Any stimulus would boost oil demand.
- "This bearish narrative is not expected to last," PVM analyst Stephen Brennock said of global economic slowdown fears on the back of Chinese lockdowns.
- "The fact is that the impact of lower Russian production has yet to be felt in full, and when it does, it could send oil prices soaring."
