Oil prices climb as traders assess supply risks

The West Texas Intermediate (WTI) for April delivery added 1.72 US dollars, or 1.7 per cent, to settle at 104.70 dollars a barrel on the New York Mercantile Exchange. Brent crude for May delivery increased 1.29 dollars, or 1.2 per cent, to close at 107.93 dollars a barrel on the London ICE Futures Exchange, as traders weighed supply risks.

"The news from Russia and Ukraine with respect to the peace talks no longer sounded nearly as optimistic as it did before, which has doubtless prompted the market to reassess the situation," Carsten Fritsch, energy analyst at Commerzbank Research, said Friday in a note."Wednesday's forecast from the International Energy Agency (IEA) is also likely to have had quite an impact," he said.

In its monthly report released on Wednesday, the IEA said "the prospect of large-scale disruptions to Russian oil production is threatening to create a global oil supply shock."

It estimated that three million barrels per day of Russian oil output could be shut in from April "as sanctions take hold and buyers shun exports."The Paris-based energy watchdog also revised its oil demand forecast from the second quarter noticeably down to take account of lower global economic growth caused by the high commodities prices and sanctions against Russia.

For the week, the WTI and Brent both declined 4.2 per cent, based on the front-month contracts. (ANI/Xinhua)

( With inputs from ANI )

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