Crude Oil Futures Market Overview 

What's Been Happening In The Crude Oil Market Recently?

The EU drafted a bill to ban oil imports from Russia, and although the bill is difficult to implement, it has intensified market concerns about supply shortages, with international oil prices surging nearly 3% and crude oil futures in Europe and the US net up nearly 9% this week.

On Thursday (April 14), West Texas light oil May 2022 futures on the New York Mercantile Futures Exchange settled at $106.95 per barrel, up $2.70 per barrel, or 2.6%, from the previous trading day, with a trading range of $102.12-107.64 per barrel; Brent crude oil June 2022 futures on the London Intercontinental Exchange settled at $111.70 per barrel, up up $2.92 per barrel, or 2.7%, from the previous session, in a trading range of $106.63-112.39 per barrel.

Dow Jones news website marketwatch.com, citing the New York Times, reported on Thursday that the European Union was drafting a ban on oil imports from Russia. The EU has imposed various sanctions on Russia but has been reluctant to ban Russian oil because some EU member states are highly dependent on Russian oil imports.

The report said the EU and diplomats said the EU was phasing in a ban to give Germany and other countries time to arrange alternative suppliers. Earlier this month, the EU took a similar approach to Russia's coal ban. According to the New York Times, France will hold its final round of elections on 24 April and EU member states will negotiate the oil embargo.

OPEC and the International Energy Agency both lowered their forecasts for global oil demand growth this year in their Monthly Oil Market Reports released this week. Dow Jones news site marketwatch.com quoted Manish Raj, chief financial officer of Velandera Energy Partners, as saying, "With a gloomy supply outlook, the only salvation will be to cut demand."

Carsten Fritsch, an analyst at Commerzbank, said the International Energy Agency had also raised its expectations for oil supply from non-OPEC countries in its Monthly Oil Market Report and that the oil market was expected to be balanced in the second half of the year even without the release of strategic reserves.

Major Russian oil buyer Trafigura said, "The company will fully comply with all sanctions that have been applied and expects a further reduction in oil trade with Russia from May 15."

Another major Russian oil buyer, Vido, had previously said, "Russian oil trade volumes will be significantly reduced in the second quarter as contractual obligations for the current term are reduced and will stop buying Russian oil by the end of 2022."

Crude oil futures markets in Europe and the US were closed on Friday for a Western religious holiday.

International oil prices plunged 4% on Monday after fears of slowing demand due to new crown controls, coupled with the joint release of strategic oil reserves by the International Energy Agency, temporarily eased fears of a supply crunch; international oil prices continued to surge over the next three days as the local geopolitical situation deteriorated.

In the past week, the first month of light, low-sulphur crude oil futures on the New York Mercantile Exchange rose by a net US$8.69, or 8.84%; the average settlement price per barrel was US$101.52, US$2.37 higher than the previous week, with a maximum settlement price of US$106.95 per barrel and a minimum of US$94.29 per barrel; the trading range was US$92.93-US$107.64 per barrel.

Brent crude oil first month futures on the Intercontinental Exchange in London rose a net $8.92, or 8.68%; the average settlement price per barrel was $105.90, $2.18 higher than the previous week, with a high settlement price of $111.70 per barrel and a low of $98.48 per barrel; the trading range was $97.57-$112.39 per barrel.