Over $ 112 a barrel in oil (upd)

LAST UPDATE 09:48

The oil price exceeded $ 110 a barrel before the OPEC + meeting, as the International Energy Agency warned that global energy security is under threat after the Russian invasion of Ukraine.

Futures in London and New York rose above this limit, with the WTI reaching its highest level since 2013.

Brent delivery in May rose 7.17% to $ 112.37 a barrel, while WTI delivery in April rose 7.16% to $ 110.81 a barrel.

The situation in the energy markets is very serious, stressed the executive director of the IEA, Fatih Birol as the US and other economies agreed to release oil reserves.

Investors will be waiting for the OPEC + reaction as the cartel meets today to discuss April supplies, but only a small increase is expected despite market turmoil.

The world oil market has already narrowed significantly before the invasion, as economies have recovered sharply from the pandemic and the cessation of Russian exports has the potential to push crude prices even higher, something traders and analysts expect.

Governments around the world are facing increasing inflationary pressures as the effects of Russian sanctions drive down energy, metals and iron prices.

This led the US and its allies to release 60 million barrels of strategic oil reserves to calm prices, although similar action late last year had little impact.

Russian uranium crude is offered for sale at a record discount, but there was no interest, highlighting the attention of buyers as they have to consider financial sanctions.

“I can only see oil going higher,” said Daniel Hynes, an analyst at Australia and New Zealand Banking Group.

“The market is actually waking up to the fact that we are already facing restrictions on Russian oil without any formal sanctions. It is difficult to see what OPEC can do,” he added.

Source: Capital

You may also like