LAST UPDATE 18:29
Crude oil prices are expanding on Wednesday, following the biggest drop in US inventories announced by the Energy Information Administration, as well as disruptions in oil exports from Russia and Kazakhstan via the CPC pipeline.
Brent crude was up $ 6.30, or 5.46%, at $ 121.78 a barrel, after falling 14 cents in the previous session.
Similarly, the US WTI sees its price rise by $ 5.53 or 5.02% to $ 114.75 a barrel, after losing 36 cents on Tuesday.
The market is affected by the prospect of further sanctions on Russia, the world’s second-largest crude exporter after its invasion of Ukraine.
US President Biden is expected to announce more sanctions on Russia when he meets with European leaders in Brussels on Thursday.
The market situation is aggravated today by Russia’s warning to reduce exports through the Caspian Pipeline Consortium (CPC) by up to 1 million barrels per day, or 1% of world production, due to storm damage to berths.
Exports through the CPC were completely suspended on Wednesday, while the restoration of the losses is expected to take at least a month and a half, according to a shipping agency.
Gas is also on the rise
Gas prices rose again today, following the stabilization trends of the previous days, which came under pressure, especially after the Russian president said he would ask for payments in rubles from “enemy countries”.
Specifically, the price of the European gas contract in Amsterdam (TTF) stands at 115 euros per megawatt hour with an increase of 16.4%, while at the high of the day it had reached 118.75 euros.
During the day, Vladimir Putin said that Russia intends to turn to the ruble in trade for the sale of gas to unfriendly countries, but said that supplies will continue in accordance with existing contracts.
The Russian president also said that the Central Bank was given a week to find a solution to transfer these companies in rubles, while the “friendly countries” were the United States, the United Kingdom and EU members.
Source: Capital
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