Oil prices fell on Friday but headed for their first weekly gain in three weeks due to broader supply concerns amid the ongoing war in Ukraine.
Benchmark Brent crude futures dropped around 0.6 percent to $118.28 but were on track for a more than 9 percent weekly gain.
Similarly, U.S. West Texas Intermediate (WTI) crude futures slipped 1.1 percent to $11.14 but were on course for a weekly gain of about 6 percent.
Supply concerns eased somewhat on expectations that oil exports from the CPC terminal on Russia’s Black Sea coast will resume today.
The CPC pipeline accounts for about 80 percent of Kazakhstan’s oil exports, and the move will save the central Asian nation’s giant oilfields operated by global energy majors from having to cut oil output, rations at one of three storm-damaged mooring points, Kazakh Energy Minister Bolat Akchulakov told a briefing.
Also weighing on prices, Germany’s Minister Robert Habeck reiterated the country’s stance that an immediate embargo on Russian energy is not possible because of the damage it would cause to Europe’s biggest economy.
Hungary’s prime minister has rejected an emotional appeal from Ukrainian President Volodymyr Zelenskyy to supply Ukraine with weapons and support sanctions on Russia’s energy sector.
On Thursday, U.S. President Joe Biden and Western allies pledged new sanctions on Russia but there was no mention of energy.
We are not at war with ourselves, Belgian Prime Minister Alexander De Croo said at the summit in Brussels, reflecting the position of EU nations like Germany, Austria and the Netherlands.
Canada announced Thursday it will boost oil exports by about five percent to help address supply shortages faced by allies shunning Russian energy after Moscow’s invasion of Ukraine.