Oil ekes out gain as fuel supplies shrink, EU weighs Russia ban

Oil managed a slim gain with the IEA highlighting the precariously tight state of global fuel stockpiles, while the EU signalled its members may not yet be able to agree on a Russian oil ban.

West Texas Intermediate settled near US$106 after fluctuating for most of the session on Thursday. European Union nations say it may be time to consider delaying a push to ban Russian oil if the bloc can’t persuade Hungary to back the embargo. A report by the International Energy Agency demonstrated how critical Russian supplies are to maintaining global fuel balances. There is currently an “almost universal product shortage,” it said in its monthly Oil Market Report.

“The products story is starting to be the tail that is wagging the dog in crude,” said Rebecca Babin, senior energy trader at CIBC Private Wealth Management. “It simply can’t be ignored.”