Frenzy rally for oil – At a high of more than 10 years the American crude

The frantic oil rally continued on Wednesday, as Russia’s ongoing and escalating attack on Ukraine heightens fears of possible shortages, despite yesterday’s commitment by the International Energy Agency (IEA) member states to release 60 million troops. stocks to ease market pressures.

Today’s rally was fueled by the decision of OPEC +, a group in which Russia also participates, to maintain its plan to increase its production in April at the current rate of 400,000 barrels per day, despite international pressure to increase production faster. in order to address any shortcomings that will arise from the Russian-Ukrainian crisis.

Thus, prices marked a new “jump” of 7% on Wednesday, with the American crude even closing at a high of more than 10 years.

In particular, West Texas Intermediate crude for April delivery rose $ 7.19, or nearly 7%, to close at $ 110, or $ 110.60 a barrel, the highest level since May 2011, according to Dow Jones Market Data. Intra-conference, US crude climbed even above $ 112, reaching $ 112.51 a barrel.

Brent crude for May delivery also jumped $ 7.96, or 7.6%, to close at $ 112.93 a barrel, the highest level since closing in June 2014.

The price of American gas also climbed to a four-week high, with the April contract strengthening by 4.1% and closing at $ 4,762 per million British thermal units.

On the other side of the Atlantic, however, the rise in gas was still explosive today, with the April contract in Amsterdam (TTF) marking a “jump” of 50% and recording gains of more than 100% since February 24 when Russia invaded in Ukraine.

Fear of Russian gas shortages has naturally boosted demand for US liquefied natural gas, which could lead to a further rise in the price of US gas as US production, the world’s largest producer, moves to near 100% of the total production capacity of the country.

Finally, both petrol and heating oil climbed to multi-year highs. In particular, the April contract for gasoline increased by 7.1% to $ 3,308 per gallon, which is the highest level at closing since September 2012, while the April contract for heating oil gained 10.9% and closed at $ 3,495 per gallon, the highest level since July 2008.

Source: Capital

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