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Brent crude futures rose $1.04, or 1%, to $107.84 a barrel at
1106 GMT. U.S. West Texas Intermediate (WTI) crude futures
gained 61 cents, or 0.6%, to 102.80 a barrel.
Analysts said market volatility is likely to pick up again soon,
with the EU still weighing a ban on Russian oil for its invasion
of Ukraine, which Moscow calls a "special military operation".
Libya, a member of OPEC, on Wednesday said the country was
losing more than 550,000 barrels per day of oil output due to
blockades at major fields and export terminals.
The oil market remains tight with the Organization of the
Petroleum Exporting Countries and allies led by Russia, together
called OPEC+, struggling to meet their production targets and
with U.S. crude stockpiles down sharply in the week ended April
15. [EIA/S]
"Global supply capacity for oil remains limited," UBS said in a
note.
"With only two countries in the OPEC+ alliance holding
significant spare capacity, Saudi Arabia and the UAE, the group
is sticking to a cautious approach in unwinding pandemic-related
production cuts."
The demand outlook in China continues to weigh on the market, as
the world's biggest oil importer slowly eases strict COVID-19
curbs that have hit manufacturing activity and global supply
chains.
Meanwhile, the Caspian Pipeline Consortium's Black Sea terminal
could return to full capacity this week, Kazakh Energy Minister
Bolat Akchulakov said on Wednesday.
"The resumption of CPC crude deliveries will be somewhat offset
by continuing outages in Libya and the likelihood of more
Russian crude getting locked out of the market in the face of an
EU ban," said Vandana Hari, founder of oil market analysis
provider Vanda Insights.
(Reporting by Mohi Narayan in New Delhi and Sonali Paul in
Melbourne; editing by Himani Sarkar and Jason Neely)
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