Oil Prices Stable Amid Balancing Act Of Russia Supply Fears and Asian Demand Concerns On COVID-19 Restrictions

On Wednesday, oil was steady after Russia cut gas supplies to Bulgaria and Poland. However, lingering concerns about Asian COVID-19 related lockdowns (especially in China) weigh on economic growth, and oil demand constrains the prices, writes Reuters.
Brent crude futures rose $0.26, or 0.30%, to $105.25 a barrel by 0823 GMT. U.S. West Texas Intermediate crude futures gained 10 cents, or 0.10%, to $101.80 a barrel.
Russian energy firm Gazprom OGZPY halted gas supplies to Bulgaria and Poland in a significant escalation of Russia's broader row with the West over its actions in Ukraine, which Moscow calls a "military operation."
The dispute sent NYMEX ultra-low-sulfur diesel futures up more than 9% on Tuesday to $4.47 a gallon, a record close.
The International Monetary Fund (IMF) warned that Asia faces a "stagflationary" outlook with the Ukraine war, a spike in commodity costs, and China's slowdown.
China's central bank said it would step up monetary policy support as Beijing races to control the COVID-19 outbreak and avert a city-wide lockdown.
Shanghai has been under lockdown for a month. Any stimulus would boost oil demand.
"This bearish narrative is not expected to last," PVM analyst Stephen Brennock said of global economic slowdown fears on the back of Chinese lockdowns.
"The fact is that the impact of lower Russian production has yet to be felt in full, and when it does, it could send oil prices soaring."