WikiFX report: Crude Oil Prices Rallied

OPEC+ agreed on Thursday to another modest monthly oil output increase, arguing that the producer group could not be blamed for disruptions to Russian supply and saying China's coronavirus lockdowns threatened the outlook for demand.

Ignoring calls from Western nations for accelerating output hikes, the group agreed to raise its June production target by 432,000 barrels per day, in line with an existing plan to unwind curbs made in 2020 when the COVID-19 pandemic hammered demand.

Crude oil futures were higher in mid-morning Asian trade April 19 as sentiment remained firm after a four-day rally on growing concerns over the possibility of a EU-wide ban on Russian oil imports and Libyan supply disruptions. This is happening after industry data indicated in drawdowns in U.S. crude and fuel stockpiles, resulting in supply worries.

Now, oil trades at $104.758, which is a further advance of $1.268 or 1.23% from the previous close of 103.490. The daily trading range is from 102.930 to 104.815, while the trading volume is 16.27K.

Brent crude futures jumped 89 cents, or 0.9%, to $105.85 a barrel by 0223 GMT. The price surges come as the European Union is planning additional sanctions against Russian supplies.

In the United States, crude and fuel stocks dropped last week, according to date from the American Petroleum Institute figures.

Later, The Organization of the Petroleum Exporting Countries and their allies are very likely to carry out their policy for another monthly production surge.