Sonali Paul

MELBOURNE, (Reuters) – Oil prices recovered some of their losses Friday, but are on course for the biggest weekly drop since November. This was due to a mix of fears about Russian oil bans and efforts to increase supply from major producers.

After dropping 1.6% the previous session, futures gained 11 cents per barrel to $109.44 at 0149 GMT

U.S. West Texas Intermediate crude oil futures rose 46 cents or 0.4% to $106.48 per barrel after a Thursday decline of 2.5%.

Brent experienced volatile trading last week. It was influenced by Russian oil embargoes, possible additions to Iran’s supply from Venezuela, Iran and the United Arab Emirates, while fighting erupted inside Ukraine. Brent had a target for a weekly drop of about 7.7%. This is after it hit a high of $139.13, a 14 year-high. After reaching a peak of $130.50, Brent was on track for an 8% drop.

This week, oil prices fell after it became apparent that the European Union, which relies heavily on Russian energy for its power, wouldn’t join Britain and the United States in banning Russian oil.

Russia, second in crude oil exports to the West after Saudi Arabia, exports around 3,000,000 barrels per day to Europe’s OECD members.

According to ANZ Research, “The oil market cannot face such a shock because inventories are at a multiyear low level.”

Vivek Dhar, a Commonwealth Bank analyst, said that in the short term supply shortages are not likely to be filled with extra production from the Organization of the Petroleum Exporting Countries (OPEC+) and its allies. This is because Russia is part of the grouping.

He stated, “They’re tied politicallly by the structure.”

Moreover, some OPEC+ countries, such as Angola or Nigeria, are having trouble meeting their production targets. This further limits the ability of the group to compensate for Russian supply loss.

Commonwealth Bank projects Brent at $110 per quarter in the second- and third quarters, with prices rising as much as $150 over the next few months.

It’s all very unclear. Dhar explained that it’s been difficult to reach a conclusion.