Crude oil supply concerns rise International oil prices rose more than 7% on March 21

Affected by EU officials' discussion of the oil embargo on Russia and geopolitical risks in the Middle East, investors' concerns about global crude oil supply rose again, and international oil prices rose sharply by more than 7%
on the 21st.
Light crude futures for April delivery rose $7.
42, or 7.
09%, to settle at $112.
12 a barrel on the New York Mercantile Exchange by the close; London Brent crude futures for May delivery rose $7.
69, or 7.
12%, to settle at $115.
62 a barrel
.

EU member states discussed the increase in sanctions against Russia on the 21st, and had different
opinions on whether to impose an oil embargo on Russia.
According to Reuters, Lithuania, Ireland and other foreign ministers called on the EU to increase sanctions against Russia's energy industry and impose an oil embargo as part of the fifth round of
sanctions against Russia.
Germany, the Netherlands and other countries oppose the proposal, among which Germany is one of
the most energy-dependent EU countries in Russia.

For some EU countries planning to impose an oil embargo on Russia, Russian Presidential Press Secretary Dmitry Peskov warned on the 21st that the oil embargo against Russia will seriously damage the balance of energy supply and demand in Europe and harm the interests of
"everyone".

Commodities broker Blue Thread Futures said the possibility of expanding EU sanctions on Russian energy exports pushed oil prices higher
.

Craig Erram, an analyst at online foreign exchange trading platform Chubb, said that if the EU does impose an oil embargo on Russia, it will support oil prices to continue to rise
.

UBS believes that current oil prices do not reflect the impending production shutdown in Russia due to the current sanctions, and that Russian crude oil production is expected to fall by 3 million b/d, a decline that cannot be offset
by other producers or the release of oil reserves.

Yemen's Houthi forces launched a series of missile and drone attacks
on Saudi Arabia's energy and desalination facilities from the night of March 19 to 20.
Saudi Aramco confirmed on the 20th that these attacks will not affect energy supply
.
However, the news still raised fears of escalating geopolitical tensions, pushing crude oil prices higher
.

Commerzbank commodities analyst Carsten Fritsch said that while the Houthi attack did not cause serious damage, it indicated the possibility of
supply disruptions in Saudi Arabia.

Susan Stryme, a market analyst at Hargreaves-Lancedown, said that although official sources indicate that this is a temporary action, it still undermines
the effect of Aramco's pledge to increase production in the coming years.

Despite rising oil prices, Saudi Arabia, a key member of the Organization of the Petroleum Exporting Countries (OPEC), has refused to increase production further, maintaining previous production increases
with major producers such as Russia.
As the Ukraine crisis continues, the U.
S.
government is trying to persuade Saudi Arabia to increase oil production to ease the impact
of high oil prices on domestic consumers.
The US "Capitol Hill" daily analyzed on the 20th that it is difficult
for the United States to achieve this demand.

Francisco Blanche, head of commodity and derivatives research at Bank of America, said on the 21st that commercial crude oil inventories in the Cushing area of the United States have decreased by about 13 million barrels this year, falling to 24 million barrels last week, which is likely to be close to the lowest operating level
.
Given the recent lack of supply, the possibility of shorting the New York Light crude futures contract at the end of each month increases, and oil prices may rise sharply
.