Oil: Earnings of 6.2% and 5.3% per week for WTI and Brent respectively

Oil prices closed higher on Friday, marking the fourth consecutive weekly rise, with analysts warning of potential energy market turmoil as tensions between Russia and Ukraine escalate.

“From an energy point of view, this could be a very important event,” said Phil Flynn, senior market analyst at Price Futures Group. “Russia is not only a major oil producer, but Europe, in its rush to become dependent on fossil fuels, is more dependent on Russia as its main source of energy,” he said.

Russia has begun moving tanks and further military equipment to Ukraine from its bases in the Far East as diplomats negotiate on the issue, the Wall Street Journal reported on Friday, citing US officials.

Also Friday, the Associated Press reported that a cyber attack made several Ukrainian government websites temporarily unavailable. The State Security Service of Ukraine SBU announced Today it has some indications that the recent cyber attack on Ukrainian government websites was carried out by hacker groups linked to the Russian intelligence services.

“While the Russian-Ukrainian crisis is having a direct impact on regional gas prices, crude oil prices are generally distant, as little Russian oil passes through Ukraine,” said Manish Raj, chief financial officer of Velandera Energy Partners. However, the possibility of an armed conflict is a serious development and has wide geopolitical implications, thus strengthening the “premiums” of oil prices “.

In this climate, the American WTI crude delivery in February, gained $ 1.70 or 2.1% and closed at $ 83.82 a barrel. On a weekly basis, it rose 6.2%, recording the fourth consecutive week of profits, according to Dow Jones Market Data.

Alongside, the Brent March delivery, the global benchmark, added $ 1.59 or 1.9% and closed at $ 86.06 a barrel. On a weekly basis, it closed with an increase of 5.3%.

Oil markets have also been eased by boosting demand optimism, Raj said. Many parts of oil demand, particularly Spain and the wider European Union, have “begun to perceive coronavirus as an endemic phenomenon”, which means that “they are learning to live with the virus instead of imposing sporadic lockdowns”.

Meanwhile, OPEC + insists on the plan to gradually increase production, resisting pressure from the US government and other countries to accelerate growth. At the same time, some OPEC members have failed to comply with the increased quotas.

Expectations for supply continue to demand increased production from OPEC + and US manufacturers in the coming months, said Robbie Fraser, a senior Schneider Electric executive.

“However, the geopolitical situation and unplanned turmoil have added to price support, at least in the short term,” he said, adding: “The chances of a breakthrough in the Iran nuclear talks have dropped again.”