Boosted by supply concerns and falling inventories, crude ended sharply higher at a more than two-week high

On March 24, oil prices were boosted by ongoing concerns about global supply disruptions caused by tensions between Russia and Ukraine, as well as a decline in U.
S.
crude oil, gasoline and distillate inventories, with crude oil futures closing sharply at a two-week high, and crude oil breaking through $120

West Texas Intermediate for May delivery settled at $114.
93 a barrel on the New York Mercantile Exchange, up $5.
66, or 5.
2 percent
.
On ICE Eurex, global benchmark Brent crude rose $6.
12, or 5.
3 percent, to $121.
60 a barrel in May
.
According to Dow Jones market data, front-month contract settlements for Brent and West Texas Intermediate reached their highest level
since March 8.

Gasoline rose 3.
2 percent in April to $3.
439 a gallon and heating oil rose 6.
5 percent in April to $4.
115 a gallon, both closing at their highest levels
since March 8.
Natural gas rose 0.
9% in April to $5.
232 per million British thermal, the highest closing price
since Feb.
2.

Supply concerns over the situation in Eastern Europe showed no signs of easing, which again pushed crude prices higher on Wednesday, with U.
S.
crude up more than 11 percent so far this week and Brent nearly 13 percent
.

Stephen Innes, managing partner at SPI Asset Management, said in a daily note: "This is an important week for the oil market, with EU leaders' meetings and NATO summits
taking place in the coming days.
Russia could be subject to a new round of sanctions, with media speculation focused on the
possibility that sanctions could affect oil.
He said the United States and Britain have imposed bans on Russian oil, and many EU member states support the ban, but "a small number of key countries, notably Germany and Hungary, oppose this decision
and must be adopted unanimously.
" ”

However, Commerzbank analyst Carsten Fritsch said in a note to clients that "if Russia further intensifies its attacks on civilians in the war in Ukraine, some countries may change their position
.
" Russia continued its offensive across Ukraine on Wednesday, where its forces were accused of kidnapping a humanitarian convoy
bound for besieged Mariupol.

Fritsch said Russia still faces challenges in selling oil, with the price of Urals currently trading at $27/b
compared to Brent.

Tariq Zahir, managing member of Tyche Capital Advisors, said: "We think oil prices will continue to move higher and any weakness should be bought
.
" He said the situation in Russia and the market that is about to enter the driving season are "bullish factors.
"
"The only thing that can undermine this upward momentum is the destruction of demand.
.
.
Or end the war
.
”

On Wednesday (March 23), the U.
S.
Energy Information Administration reported that U.
S.
domestic crude inventories fell by 2.
5 million barrels
in the week ending March 18.
Analysts in the S&P Global Commodities Watch survey expect EIA crude oil inventories to be flat
this week, on average.
The American Petroleum Institute reported on Tuesday that oil production fell by 4.
3 million barrels
.
The EIA also reported a weekly decrease of 2.
9 million barrels in gasoline inventories and a 2.
1 million barrel decrease in distillate inventories
.
Weekly gasoline supplies are expected to fall by 1.
7 million barrels and distillate supplies by 1.
4 million barrels
, according to analyst surveys.

Crude oil inventories
in Cushing, Oklahoma.
Crude inventories at the New York Mercantile Exchange Delivery Center edged up by 1.
2 million barrels last week, while stocks in the U.
S.
Strategic Petroleum Reserve fell by 4.
2 million barrels
, according to the U.
S.
Energy Information Administration (EIA).

Matt Smith, chief U.
S.
oil analyst at Kpler, noted that although commercial inventories have released 4.
2 million barrels of SPR, crude inventories are still on a downward trend and imports are up
slightly.
"Increased refining activity and strong growth in exports are the factors
driving oil prices higher," he said.