RIYADH: Oil prices slipped on Tuesday following the second day of thin trading in Asia, pulled in opposite directions by China’s COVID-19 lockdowns, which could weigh on fuel demand, and prospects for a supply hit from a possible European oil embargo on Russia.
Brent crude futures fell 23 cents, or 0.2 percent, to $107.35 a barrel at 0532 GMT, wiping out gains earlier in the day in trading thinned by holidays in China, Japan and parts of Southeast Asia.
US West Texas Intermediate crude futures similarly dropped 24 cents, or 0.2 percent, to $104.94 a barrel, after hitting an intraday high of $105.80.
Marathon Petroleum posts profit in Q1
US refiner Marathon Petroleum Corp. posted a first-quarter profit on Tuesday, compared with a loss a year earlier, as demand for fuel and refined products recovered to near pre-pandemic levels amid tight supplies.
Global fuel demand has recovered to near pre-pandemic levels, while Western sanctions on Russia, following its invasion of Ukraine, have tightened crude oil supplies worldwide.
In addition, refining capacity dropped worldwide during the pandemic, with several less profitable oil refineries closing operations in the last two years.
The company said its refining and marketing margins rose to $15.31 per barrel in the first quarter from $10.16 per barrel a year ago.
Crude capacity utilization was 91 percent, resulting in total throughput of 2.8 million barrels per day, compared with an 83 percent utilization and total throughput of 2.6 million bpd a year earlier.
The Findlay, Ohio-based refiner said net profit was $845 million, or $1.49 per share, for the three months ended March 31, compared with a loss of $242 million, or 37 cents per share, a year earlier.
Devon energy’s profit soars in Q1
US shale producer Devon Energy reported a rise in quarterly income on Monday, boosted by surging oil and gas prices after Russia’s invasion of Ukraine stoked global supply concerns.
The Oklahoma City-based company reported net earnings of $1 billion, or $1.48 per share, for the first quarter ended March 31, from $213 million, or 32 cents per share, last year.
Petrobas increases jet fuel prices
Brazilian state-run oil company Petrobras increased its jet fuel prices in several cities starting on Sunday, data published on its website showed.
The average hike was close to 7 percent, according to the Brazilian airlines association Abear.
Kerosene prices have climbed by about 49 percent this year.
(With input from Reuters)