New rise in oil prices

Oil prices have risen sharply as fears of Western sanctions cut off Russian oil exports, offsetting the possibility of more oil supplies from Iran, and news of a fire at a nuclear plant in Ukraine has shaken markets.

World stock markets have fallen and oil prices have risen following signs of escalating conflict, with news of Russian troops attacking Ukraine’s nuclear plant, the largest in Europe.

Brent crude rose 1.9 percent to $ 112.52 a barrel, and WTI rose 2.2 percent to $ 110.04 a barrel after hitting $ 112.84 a barrel.

Oil prices are expected to record the biggest weekly rise since mid-2020, with the WTI gaining 18% and Brent up 14%.

Oil is mounting amid fears that Western sanctions on Russia over uranium would cut off supplies from Russia, the world’s largest exporter of crude and petroleum products.

Trade in Russian crude has slowed as buyers are reluctant to buy because of sanctions, and there is growing pressure on US President Biden to ban US imports of Russian oil.

The escalation of the Russian war in Ukraine has not only caused geopolitical risks, but is adding to the already growing inflation concerns as well as leading to higher risk premiums, RBC Capital reports.

More oil reserves could be added than a coordinated release of 60 million barrels of oil reserves from developed countries.

Japan said today it plans to release 7.5 million barrels of oil, although only a small part of demand.

“Rising prices associated with real and estimated disruptions to Russian oil exports should offset any fall in prices from a potentially larger supply of Iranian oil,” the Commonwealth Bank of Australia said.