Oil turns higher on looming EU ban on Russian oil

Oil rose on Wednesday, following a 9 per cent drop over the previous two sessions, on supply concerns as the European Union worked on gaining support for a ban on Russian oil and major producers warned they may struggle to fill the gap when demand improves.

Brent crude rose $1.42, or 1.4 per cent, to $103.88 a barrel at 0232 GMT, while US West Texas Intermediate crude climbed $1.23, or 1.2 per cent, to $100.99 a barrel. Both contracts fell more than $1 in early trade.

Oil prices have slumped with commodities and share markets this week, on worries about the hit to economic activity from prolonged Covid curbs in China and sharp interest rate hikes in the United States.