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Oil Prices Recover As China's Virus Cases Ease

Oil prices climbed around 3 percent on Wednesday, after having fallen around 9 percent over the previous two sessions amid uncertainty over Russian energy embargo by EU and worries about prolonged Covid lockdowns in Shanghai.

Benchmark Brent crude futures jumped 2.7 percent to $105.28 a barrel, while U.S. crude futures were up 2.9 percent at $102.66.

The upside was supported by supply concerns as the European Union works on gaining support for a Russian oil embargo.

France has said a deal on a proposed EU ban on Russian oil to punish Moscow for waging war on Ukraine could be struck this week, despite Hungary's opposition.

Investors were also reacting to reports suggesting that Covid-19 infections dropped in Shanghai and Beijing.

The Energy Information Administration publishes its weekly oil market data including statistics on the stockpile changes of crude oil, gasoline and distillates later in the day.

The American Petroleum Institute on Tuesday reported that U.S. crude stockpiles rose by 1.62 million barrels last week.

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