Higher As Potential Sanctions On Russian Energy In Focus

WTI and Brent deal ~$1.30 firmer at writing apiece, back from session highs, but operating above Monday’s best levels. Major crude benchmarks have caught a bid as well-documented debate re: the potential for European sanctions on Russian energy exports in response to alleged war crimes in Ukraine, continues to do the rounds in Asia,

• Worry re: Chinese energy demand remains elevated as national case counts have reached levels last witnessed in early ‘20. The lockdown in Shanghai has been extended past its initial Tuesday expiry as total infections continue to rise (asymptomatic and symptomatic), with the case count for Apr 4 suggesting that the city now accounts for >80% of the nationwide total (13.3K in Shanghai vs. 16.4K nationwide).
• Keeping within the country, a note that the Chinese transport ministry on Sunday had earlier forecast sharp declines in road traffic and flights over the ongoing Qingming national holiday, due in part to an expansion of pandemic control measures across the country.
• Elsewhere, details on the next coordinated release of crude from the strategic reserves of International Energy Agency (IEA) member countries are due “early this week”, specifically on its “size and timing”.