FX.co ★ Oil Extends Gains On Fears Of Supply Shortage

Oil extended gains on Wednesday after having jumped around 7 percent in the previous session, as China partially eased Covid curbs and OPEC warned it would be impossible to replace potential supply losses from Russia.

Benchmark Brent futures climbed 1.7 percent to $106.41 a barrel, while U.S. crude futures were up 1.4 percent at $101.94.

Prospects for peace in Ukraine seem to fade as Russian President Vladimir Putin vowed to continue the war and U.S. President Joe Biden has called Russia's invasion of Ukraine a 'genocide,' a term his administration has been avoiding.

Putin vowed to continue the invasion of Ukraine until "full completion" of goals. He said that peace talks were "at a dead end," and Russia's military operation was going as planned.

The U.S. aims to send more weapons to Ukraine, in a sign the war is expected to drag on.

The full impact of sanctions and buyer aversion to Russian oil will take full effect from May onwards, the International Energy Agency said, adding that it expects Russian oil output losses to average 1.5 million bpd in April, with losses growing to close to 3 million bpd from May.