By Barani Krishnan

Investing.com – Oil bulls managed to save April from becoming a month of torrid losses as concerns over Russian oil disruption offset downside brought by China’s newest Covid crisis.

Crude prices could see another boost ahead of next week’s OPEC+ meeting, where producer indifference to increasing output could prompt a barrel to test highs of $115 and above.

In Friday’s trade, crude, the London-traded global benchmark for oil, settled up $1.75, or 1.6%, at $109.34 a barrel. 

Brent gained 2.5% for the week. It rose 1.3% for the month. While it was Brent’s smallest monthly gain since December, it nevertheless ensured an unbroken winning streak over the past five months that gave longs in the global crude benchmark a windfall of 55%.

New York: The benchmark U.S. crude oil, WTI, settled at $104.69 per barrel, 67 cents lower, or 0.6%.

WTI was up almost 2 percent for the week. It was 4.4% higher for the month. Brent has been up every month since November and WTI is now at a premium 58%.

Oil began this week on a somber note, as a two-day selloff from last week extended into Monday on worries about China’s Covid situation and a at two-year highs that made crude and other commodities more expensive for non-holders of the U.S. currency. 

Crude oil prices recovered from their initial weakness in the three session that began Tuesday. This was due to tight supplies returning to the forefront of traders’ minds. The rally was intensified by Thursday’s reports that Germany would likely be the European Union’s leader in banning Russian crude oil. This came as traders were concerned about more disruptions to already stressed global energy markets. 

Before the invasion of Ukraine and subsequent sanctions on Moscow, Germany used to get 35% of its oil directly from Russia. Many EU countries had resorted to Russia as their sole source of crude oil for many years.

“If Europe is suddenly required to look for huge amounts of gas or oil supplies in international markets, that will offset China’s slowdown fears and send prices higher,” said Jeffrey Halley, a senior market analyst at online trading platform OANDA.

With OPEC+ due to meet on May 4, the market’s upward momentum is expected to last another week at least.   

OPEC+, led by the 13-member Saudi-controlled Organization of the Petroleum Exporting Countries and 10 other oil producers steered by Russia, has pushed prices up each time it met over the past year by offering a meager 400,000 barrels per day hike in monthly production — and then not even fulfilling that.