Oil rose on Thursday on supply concerns and as a Bank of England interest rate hike defied some expectations of a larger increase.

Brent crude futures were up 71 cents, or 0.79%, at$90.54 per barrel by 1408 GMT, after rising by more than $2 earlier in the session.

U.S. West Texas Intermediate (WTI) crude was up 53 cents, or 64%, at $83.47, after rising by more than $3 earlier in the session.

The European Union is looking at an oil price cap, tighter curbs on high-tech exports to Russia and more sanctions against individuals, diplomats said on Thursday, in response to what the West condemned as a new escalation in Moscow’s war in Ukraine. read more

Russia pushed ahead on Thursday with its biggest conscription since World War Two, raising concerns an escalation of the war in Ukraine could further hurt supply. read more

“(Russian President Vladimir Putin’s) frequent irrational actions and reactions are what will keep the market volatile and violent on occasions,” said Tamas Varga, oil analyst at London brokerage PVM Oil Associates.

Supply constraints from the Organization of the Petroleum Exporting Countries (OPEC) added further support, analysts said.

“OPEC crude exports have levelled off from a strong increase at the start of this month,” said Giovanni Staunovo, commodity analyst at UBS.

Crude oil demand in China, the world’s largest oil importer, is rebounding, having been dampened by strict COVID-19 restrictions. read more

The Bank of England raised its key interest rate by 50 basis points to 2.25% and said it would continue to “respond forcefully, as necessary” to inflation, despite the economy entering recession. read more

The news failed to have a bearish impact on prices as the rate hike was “less than markets had been pricing and defying some expectations that UK policymakers might be forced into a larger move,” ING bank said.

Meanwhile Turkey’s central bank unexpectedly cut its policy rate by 100 basis points to 12%, when most central banks around the world are moving in the opposite direction. read more

Following the Federal Reserve’s hefty 75 bps rise on Wednesday, rate increases also came thick and fast from the Swiss National Bank, Norges bank and Indonesia’s central bank, with a further hike expected from the South African Reserve bank later in the day.

“This just shows how synchronised this current tightening cycle is,” Deutsche Bank said.

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