Oil futures rose Thursday morning, adding to the gains.
The International Energy Agency said the decline in oil demand due to higher prices will not compensate for the disruption of Russian oil supplies, according to Reuters.
US West Texas Intermediate crude rose $2.22, or 2.3 percent, to $97.27 a barrel.
Brent crude futures rose by about $2.40, or 2.4 percent, to $100.42 a barrel.
Both contracts settled lower on Wednesday, after an unexpected jump in US crude stocks and signs of progress in peace talks between Russia and Ukraine.
US crude closed 1.08% lower at $95.04 a barrel, while Brent crude closed down 1.9% at $98.02 a barrel.
A report by the International Energy Agency said that about three million barrels per day of Russian oil production could be halted due to Western sanctions and with buyers neglecting Russian exports. This expected decline in demand will exceed one million barrels per day as a result of higher prices.
U.S. oil inventories rose by 4.3 million barrels in the week ending March 11 to 415.9 million barrels, according to the U.S. Energy Information Administration, topping analysts’ expectations for a decline of 1.4 million barrels.
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