May 6. Brent rose to $114 per barrel The price of oil is rising on Friday on continuing concerns that the market will face a shortage of supply. The current Brent quote is $112.57 (the daily maximum is at $114 per barrel). WTI oil is trading at $109.56 (the daily maximum is $110.84 per barrel). Analysts note that since the beginning of the week, oil quotes have increased by more than 5% and may end with a strong increase for the third week in a row. OPEC+ countries yesterday agreed to maintain the plan to increase the production quota in June by 432 thousand barrels per day. However, despite a systematic increase in quotas since August 2021, OPEC+ cannot reach the permitted production level. It is noted that by the end of March, producers lagged behind by 1.45 million b/s. Meanwhile, European states are preparing to restrict oil imports from Russia. Earlier this week, the European Commission proposed to impose an embargo on Russian oil supplies to EU countries as part of the upcoming sixth package of sanctions. An additional impact on the dynamics of oil prices is the concern about demand due to the outbreak of coronavirus in China, as well as about the increasingly narrowing supply. Moreover, the US has announced its intention to start buying oil on the market to replenish the strategic reserve (SPR). It is expected that the Ministry of Energy will begin accepting applications from sellers this fall, although real deliveries will begin later. May 5. Bank of England hikes interest rates to 13-year high The Bank of England has raised interest rates to the highest level since 2009 to counter inflation, which could exceed 10% this year. The regulator raised the rate from 0.75% to 1%. Some representatives of the central bank called for an even greater increase – up to 1.25%, in order to eliminate the risk of inflation entering the economy. Today's Bank of England move represents the fourth consecutive rate hike since December – and the fastest increase in borrowing costs in 25 years. The regulator also did not rule out further tightening of monetary policy in the coming months. In addition, the Bank of England said that it is also concerned about the impact of China's policy to block Covid-19, which threatens to hit supply chains again and increase inflationary pressures.