UPDATE 9-Oil jumps 4% as U.S. gasoline prices hit record high

Reuters

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    * U.S. gasoline futures, pump prices hit all-time highs
    * WTI rises for third week, Brent down for first week in
three
    * EU embargo could take 3 mln bpd of Russian oil offline
-Rystad
    * Global stock markets rise after volatile week

 (Adds latest prices, quote, bullets)
    By Scott DiSavino
    NEW YORK, May 13 (Reuters) - Oil prices rose about 4% on
Friday as U.S. gasoline prices jumped to a record high, China
looked ready to ease pandemic restrictions and investors worried
supplies will tighten if the European Union bans Russian oil.
    Brent  LCOc1  futures rose $4.10, or 3.8%, to settle at
$111.55 a barrel. U.S. West Texas Intermediate (WTI) crude
 CLc1  rose $4.36, or 4.1%, to settle at $110.49.
    That was the highest close for WTI since March 25 and its
third straight weekly rise. Brent fell for the first time in
three weeks.
    U.S. gasoline  RBc1  futures soared to an all-time high
after stockpiles fell last week for a sixth straight week. That
boosted the gasoline  RBc1-CLc1  crack spread - a measure of
refining profit margins - to its highest since it hit a record
in April 2020 when WTI finished in negative territory.  EIA/S 
    "There has not been an increase in (U.S.) gasoline storage
since March," said Robert Yawger, executive director of energy
futures at Mizuho, noting gasoline demand is poised to spike
when summer driving season starts on the U.S. Memorial Day
holiday weekend.
    The U.S. 3:2:1-crack spread  CL321-1=R , another measure of
refining margins that includes gasoline and diesel, rose to a
record, according to Refinitiv data going back to May 2021.
    Automobile club AAA said U.S. prices at the pump rose to
record highs on Friday of $4.43 per gallon for gasoline and
$5.56 for diesel.
    Oil prices have been volatile, supported by worries a
possible EU ban on Russian oil could tighten supplies but
pressured by fears that a resurgent COVID-19 pandemic could cut
global demand.
    "An EU embargo, if fully enacted, could take about 3 million
bpd (barrels per day) of Russian oil offline, which will
completely disrupt, and ultimately shift global trade flows,
triggering market panic and extreme price volatility," said
Rystad Energy analyst Louise Dickson.  urn:newsml:reuters.com:*:nL2N2WO1QF
    This week, Moscow slapped sanctions on several European
energy companies, causing worries about supplies.  NG/EU 
 urn:newsml:reuters.com:*:nL5N2X37FL  urn:newsml:reuters.com:*:nL2N2X50CU 
    In China, authorities pledged to support the economy and
city officials said Shanghai would start to ease coronavirus
traffic restrictions and open shops this month.  urn:newsml:reuters.com:*:nL2N2X50F2
    "Crude prices rallied on optimism that China’s COVID
situation was not worsening and as risky assets rebounded," said
Edward Moya, senior market analyst at data and analytics firm
OANDA.
    Global shares rose after a volatile week of trading, pushing
up stock indexes in the United States  .DJI   .SPX   .IXIC  and
Europe.  urn:newsml:reuters.com:*:nL2N2X517Q  urn:newsml:reuters.com:*:nL3N2X530A
    Pressuring oil prices during the week, inflation and rate
rises drove the U.S. dollar  .DXY  to a near 20-year high
against a basket of currencies, making oil more expensive when
purchased in other currencies.  urn:newsml:reuters.com:*:nL2N2X519C
    The EU said there was enough progress to relaunch nuclear
negotiations with Iran. The U.S. said it appreciated the EU's
efforts but said there was no agreement yet and no certainty
that one might be reached.  urn:newsml:reuters.com:*:nL5N2X52E7  urn:newsml:reuters.com:*:nL2N2X51LE
    Analysts said an agreement with Iran could add another 1
million bpd of oil supply to the market.

 (Additional reporting by Noah Browning in London, Sonali Paul
in Melbourne and Isabel Kua in Singapore; Editing by Marguerita
Choy and David Gregorio)
 ((scott.disavino@thomsonreuters.com; +1 332 219 1922; Reuters
Messaging: scott.disavino.thomsonreuters.com@reuters.net))

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