Isabel Kua and Sonali Paul

SINGAPORE, (Reuters) – Oil prices fell on Friday as supply worries eased on the expectation that Kazakhstan would resume crude oil exports from its CPC terminal. However, there was still disagreement over whether or not to impose an embargo against Russia.

After dropping more than 2% in the preceding session, crude oil prices fell 1.3% to $117.47 per barrel at 0800 GMT. U.S. West Texas Intermediate(WTI) crude dropped 1.4% to $110.78 per barrel.

The benchmarks still managed to make gains despite the decline. Brent was poised for a leap of 9.9%, while WTI is on pace for a rise in 6%. This market was backed by wider supply concerns that were triggered by Russia’s invasion Ukraine.

Britain and the United States, which are both less dependent on Russian oil than the EU, have placed bans on Russian crude. Russian oil and natural gas are heavily dependent upon the EU. This leaves them with a greater choice about whether to place sanctions.

J.P. Morgan analyst said that Russia was the biggest buyer of Russian oil. Accordingly to a note, this will increase global oil prices.

Sources within OPEC said that officials from the group felt that a possible EU ban of Russian oil by the EU would harm consumers, and had expressed their concern to Brussels.

Global stockpiles have fallen to their lowest point since 2014 and analysts believe the market is still vulnerable to supply shocks.

Following a severe storm that damaged the Caspian Pipeline Consortium’s (CPC) terminal at Russia’s Black Sea coast, exports to Caspian Pipeline Consortium were stopped on Wednesday.

Bolat Akchulakov, Kazakh Energy Minister, stated that exports to the terminal would resume Friday using one of three damaged mooring points.

The Intercontinental Exchange (NYSE) increased Brent futures margins to 19% in response to market volatility. It did this starting Friday. This is the third increase of the year.

When markets are volatile, futures margin rates can be increased. To prove their ability to meet their obligations, traders must increase the amount of deposit that they keep at the exchange.

The United States announced that it is in talks with its allies to release more oil from stored tanks. This was done in an effort to reduce supply concerns. Sources told Reuters that the United States would announce a deal this year to provide more U.S. liquefied gas (LNG), to Europe.