Oil prices expand their profits at the end of Friday’s third volatile week of trade, after slight developments in peace talks between London — Russia and Ukraine have raised concerns about long-term turmoil in oil supplies. Did.
Brent crude oil futures surged $ 1.14 (1%) at 1003 GMT to $ 107.78 a barrel after a surge of nearly 9% on Thursday, the highest rate of increase since mid-2020.
Crude oil futures at West Texas Intermediate (WTI) rose $ 1.24 (1.2%) to $ 104.22 a barrel, up 8% on Thursday.
Both benchmark contracts were set to fall by more than 4% after trading in the $ 16 range. Prices have fallen from their 14-year highs nearly two weeks ago.
A combination of concerns about supply shortages from traders avoiding the Russian barrel, being at a loss for nuclear negotiations with Iran, declining oil reserves, and a surge in COVID-19 cases in China, which is damaging demand. This week, I will ride a crude oil jet coaster.
Volatility scares players from the oil market, which in turn can exacerbate price volatility.
Despite the retreat of the battlefield and disciplinary sanctions by the West, Russian President Vladimir Putin shows little sign of forgiveness. The Kremlin said he had not yet reached an agreement four days after the meeting with Ukraine.
“President Putin doesn’t seem to want to end the hostilities, which could continue to provide full support for the energy complex and further increase volatility,” said Stephen Brenock, a PVM oil market analyst. increase.
He also said that rising US interest rates indicate the strength of the US economy that could underpin oil demand.
Helima Croft, an analyst at RBC Capital, warned that Russia’s oil export losses are likely to last long and that the supply of offset barrels is in short supply.
Emphasizing tight supply, consultancy FGE said land product inventories in major countries were 39.9 million barrels lower this time of year compared to the 2017-2019 average.
By Shadia Nasralla