Oil prices rose further in early Asian trade on Wednesday, as geopolitical tensions remained high, with Russia threatening gas supply cutbacks to Poland and Bulgaria, while optimism for Chinese economic stimulus boosted oil demand.

Also Read| Sensex tanks over 490 points while Nifty around 17,050 in early trade

Brent crude futures increased $1.27 to $106.26 per barrel, up 1.2%. WTI crude futures in the United States climbed $1.11, or 1.1%, to $102.81 a barrel.

Also Read| US Stock Market: DJIA, S&P500, Nasdaq and Russell ended 2.5% down on Tuesday

The market is pulled between supply and demand fears about Russian oil and gas disruptions and a worsening global economic outlook, thus crude prices finished roughly 3% higher on Tuesday in a tumultuous session.

Also Read| Fuel price today: Petrol and Diesel rates remain unchanged on April 27, 2022

In a huge escalation of Russia’s larger confrontation with the West over its invasion of Ukraine, which Moscow terms a “military operation,” Gazprom has informed Poland and Bulgaria that gas supplies will be cut off as of Wednesday.

Also Read| Stocks that should be on your watchlist on Wednesday, April 27, 2022

On Tuesday, NYMEX ultra-low-sulfur diesel futures rose more than 9% to a new high of $4.47 a gallon.

Also Read| Trending Stocks: Bajaj Finance, HDFC Life, Wipro and others in news today

The International Monetary Fund (IMF) cautioned on Tuesday that Asia faced a “stagflationary” outlook, citing the Ukraine conflict, rising commodity prices, and China’s slowdown as major concerns.

Also Read| LIC IPO: Price band fixed at Rs 902-949, Rs 60 discount for policyholders

China’s central bank announced on Tuesday that it will increase cautious monetary policy support for the country’s economy as Beijing tries to contain a nascent COVID-19 outbreak in the capital and avoid the same crippling city-wide lockdown that has engulfed Shanghai for more than a month. Any stimulus would increase the demand for oil.

Also Read| DWAC stock rebounds as Elon Musk acquires Twitter

China’s domestic flight demand has risen, driving global airline capacity to its highest level in 2022 this week, according to travel data firm OAG, despite lengthy lockdowns in Asia’s largest aviation market.

Also Read| SEBI rejigs its advisory committee on market data

In terms of supply, the US government will release statistics on crude stocks later on Wednesday. According to industry figures released on Tuesday, crude and distillate stocks in the United States increased last week, but gasoline inventories decreased.