XOM - Oil prices rally on mixed headlines following a sharp selloff over the past week

Oil prices (USO) traded higher by ~7% ahead of the US equity market open Thursday, following a series of mixed headlines and $14 selloff since Friday's close. Diplomatic progress in Ukraine had removed much of the geopolitical risk premium from oil prices in recent days; however, when referring to speculation that the two countries had made substantial diplomatic progress Thursday, Kremlin spokesman Peskov said "on the whole, that's wrong." Lockdowns in China provided a headwind to oil markets this week; however, Thursday President Xi called on officials to "minimize impacts on the Economy from Covid controls." The DOE inventory release Wednesday showed a larger than expected build in crude oil inventories, though oil plus oil products continued to fall, down 5.6mb on the week. The IEA pointed to accelerating Russian supply impacts in April, and Morgan Stanly adjusted oil balance forecasts, reducing Russian supplies by 1mb/d from April onward. While

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Oil prices rally on mixed headlines following a sharp selloff over the past week