Oil futures contracts closed higher on Monday (14), reaching the highest level since 2014, in a session marked by volatility.
The commodity traded higher earlier in the day but then turned lower as the dollar strengthened amid growing fears that Ukraine could be invaded by Russia. During the afternoon, oil began to rise and extended gains on reports that the Russian attack may be close.
On the New York Mercantile Exchange (Nymex), the barrel of WTI oil scheduled for delivery in March rose 2.53% (US$ 2.36), to US$ 95.46, the highest level since 2014. Brent for April rose 2.26% ($2.04) this session to $96.48 on the Intercontinental Exchange (ICE).
Ukrainian President Volodymyr Zelensky said he has been warned that Russia will attack the country next Wednesday.
Furthermore, UAE Energy Minister Suhail al-Mazrouei said today that these geopolitical tensions are pushing up the price of oil, more than a supply problem that could justify the Organization of Petroleum Exporting Countries and allies (OPEC+) to accelerate the increase in their shipments.
Iranian Foreign Minister Hossein Amirabdollahian said Iran was eager to reach a quick deal with world powers on nuclear talks.
For Rystad Energy, the hopeful news about the Iran-US nuclear talks is outweighed by lingering concerns about military tensions in Ukraine and their possible ramifications on Russian exports.
“The threat of war and disruption may be enough to drive prices higher. The tense situation in Ukraine could still spiral out of control, and the oil market is on edge looking for news from the diplomatic scene.”
According to TD Securities, in addition to geopolitical tensions, which could still drive oil prices into triple digits, other supply-side factors have started to ease and could drive prices down.
“We continue to see nascent signs of production normalization in Libya, Nigeria, Venezuela and other OPEC+ countries, suggesting that operational risks have decreased lately,” he ponders.
Source: CNN Brasil
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