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Brent crude futures rose $1.79, or 1.7%, to $109.38 a barrel by
0912 GMT after gaining 2.1% in the previous session. The
front-month June contract expires later on Friday. The more
active July contract rose $1.54 to $108.80.
U.S. West Texas Intermediate crude gained $1.08, or 1%, to
$106.44 after advancing by 3.3% on Thursday.
Both contracts are set to finish up on the week and post their
fifth straight monthly gains, buoyed by the increased likelihood
that Germany will join other European Union member states in an
embargo on Russian oil.
Oil prices have remained volatile, however, with China showing
no signs of easing lockdown measures despite the impact on its
economy and global supply chains.
"With both full and partial lockdowns ramping up since March,
China's economic indicators have plunged further into the red.
We now expect China's GDP to slow further in Q2," Wood
Mackenzie's head of APAC economics, Yanting Zhou, said in a
note.
"Oil market volatility is set to continue, with the potential
for more widespread and prolonged lockdowns into May and beyond,
skewing the near-term risks for China's oil demand – and prices
- to the downside."
On the supply side, OPEC+ is likely to stick to its existing
deal and agree another small output increase for June when it
meets on May 5, six sources from the producer group told Reuters
on Thursday.
However, Russian oil production could fall by as much as 17%
this year, an economy ministry document seen by Reuters showed
on Wednesday, as Western sanctions over Russia's invasion of
Ukraine hurt investments and exports.
Sanctions have also made it increasingly difficult for Russian
ships to send oil to customers, prompting Exxon Mobil Corp to
declare force majeure for its Sakhalin-1 operations and curtail
output.
"If Europe is suddenly required to look for huge amounts of gas
or oil supplies in international markets, that will offset
China's slowdown fears and send prices higher," said Jeffrey
Halley, a senior market analyst at OANDA.
(Reporting by Noah BrowningAdditional reporting by Florence
TanEditing by David Goodman)
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