1117 GMT June 30, 2022
Brent crude futures rose by $3.26, or 3.31%, to $101.74 a barrel at 1002 GMT while U.S. West Texas Intermediate was up $3.01, or 3.19%, at $97.30. Both contracts lost about 4% on Monday, Reuters reported.
Shanghai said on Monday that more than 7,000 residential units had been classified as lower-risk areas after reporting no new infections for 14 days and districts have since been announcing which compounds can be opened up.
The Organization of the Petroleum Exporting Countries (OPEC), meanwhile, warned that it would be impossible to replace seven million barrels per day (mbd) of Russian oil and other liquids exports lost in the event of sanctions or voluntary actions.
The European Union has yet to agree any embargo on Russian oil, but some foreign ministers said the option is on the table.
"The oil market is still vulnerable to a major shock if Russian energy is sanctioned, and that risk remains on the table," wrote Edward Moya, a senior market analyst with OANDA.
IEA member nations are planning to release 240 million barrels over the next six months from May in an effort to calm the market.
While the release will ease immediate tightness, analysts suggested it will not solve the structural deficit caused by underinvestment and stocks will need to be replenished.