Crude oil futures closed up more than 6% today, extending gains from the previous session. The price of oil benefited from the continuation of the conflict in Ukraine and the consequent fear of restrictions on the supply of commodities from Russia.
In addition, investors followed the unfolding of the attacks on oil facilities in Saudi Arabia over the weekend.
On the New York Mercantile Exchange (Nymex), a barrel of WTI oil due for delivery in May closed up 6.67% (US$ 6.88), at US$ 109.97. Meanwhile, Brent for May rose 7.12% ($7.69) on the Intercontinental Exchange (ICE) to $115.62.
Oil was already up more than 3% in the early hours of the morning, given the lack of concrete progress in peace talks between Russia and Ukraine and attacks in Saudi Arabia.
Later, futures contracts accelerated higher, after information from the Tass agency that Russian authorities are exploring the possibility of imposing a ban on uranium exports from the country.
“This issue is also on the agenda, it is being studied,” said Russian Deputy Prime Minister Alexander Novak. He also pointed out that oil prices could reach $300 a barrel if the Russian commodity is shunned by the West.
Commerzbank points out that one of the reasons for the recent rise in oil is the fact that the European Union (EU) is considering a ban on oil imports from Russia. The EU High Representative, Josep Borrell, said that new possibilities for sanctions against Russia will be discussed at today’s meeting, including the energy sector.
In this scenario, Fitch Ratings has increased the forecast for oil prices for 2022 and 2023. According to the rating agency, the significantly greater risks of interruptions in the supply of Russian oil and the intention of Europe and some countries not Europeans to reduce their dependence on Moscow’s fuel.
In addition, after calls by the US government and other countries to increase oil production and help stem post-war price increases, executives at shale gas companies pointed to several bottlenecks that limit their ability to increase production quickly this year, including supply chain issues, investor caution and limits on your remaining drill stock.
“If Russia’s oil production and exports are reduced by the order of two million to three million barrels a day, the shale answer is a garden hose trying to fill an Olympic-sized swimming pool,” said Diamondback president Kaes. Van’t Hof.
*With information from Dow Jones Newswires
Source: CNN Brasil
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