Although oil prices are still vulnerable to demand shocks as China continues to impose tough curbs to contain COVID outbreaks. "For oil prices to take off on a sustainable trajectory, reopening mainland cities is necessary for translating into a sustainable economic rebound that supports oil demand," SPI Asset Management's managing director, Stephen Innes, said in a note. The Libya outage highlights just how bullishly reactive oil markets have become to supply shocks, Innes added. Meanwhile the possibility of a European Union ban on Russian oil for its invasion of Ukraine continues to keep the market on edge. "Market sentiment was supported by the Russian minister saying more countries banning Russian oil imports would mean oil prices exceeding historic highs," ANZ Research analysts said in a note.

Source: Libya Today April 19, 2022 06:32 UTC