WTI crude futures fell below $114.5 per barrel on Thursday, reversing gains from earlier in the day and following a 5% jump in the previous session as traders took profits, while volatility in oil markets continued. Oil prices surged overnight following reports that crude exports from Kazakhstan’s Caspian Pipeline Consortium terminal, which carries about 1.2 million barrels per day, had completely halted due to storm damage.
Russia’s Deputy Prime Minister said oil supplies could be stopped for two months. EIA data also showed US crude inventories fell by 2.5 million barrels last week, defying market expectations for a modest increase and adding to the bullish sentiment. Meanwhile, US President Joe Biden is set to meet NATO allies on Thursday and is expected to announce additional sanctions against Russia over its invasion of Ukraine.