Over $ 114 a barrel oil – Record at 198 euros for gas

LAST UPDATE: 11.34

The intense oil rally raises prices above $ 114 a barrel, as buyers avoid Russian crude after the invasion of Ukraine, while the OPEC + team does its best to ignore the war, which started one of the key of its members.

The WTI April delivery is up 2.72% at $ 113.58 a barrel, while brent May delivery strengthened 2.67% to $ 115.99.

The invasion has sparked supply concerns in the commodity market, from energy to grain, prompting consumers, including China, to look for raw materials. Buyers continue to shy away from Russian crude as they try to impose economic sanctions on Russia, and traders expect prices to continue to rise. Despite the turmoil, OPEC + is on the sidelines.

The International Energy Agency has warned that global energy security is under threat, and a planned release of crude stockpiles from the US and others has done little to stifle market fears.

It is characteristic that Surgutneftegas failed to sell even a small amount of the Russian crude it offered for the third time.

The United States and its allies have so far ruled out Russian crude exports amid concerns about the impact of rising energy prices on consumers, but trade is hurting as banks withdraw funding and shipment worlds are growing.

“There are real fears of a squeeze in supply. If the situation in Ukraine worsens, then expect another rally,” said an analyst at Samsung Futures.

European gas at record levels

European gas, meanwhile, set a new record as the market continued to focus on sanctions against Russia in response to its invasion of Ukraine.

The Dutch contract increased up to 20% to 198 euros per megawatt hour. The corresponding contract in the United Kingdom increases by 17%.

While sanctions do not specifically target energy, traders and charterers are reluctant to trade with Russian suppliers.

Nevertheless, Russian gas continues to flow through pipelines to Europe, including through Ukraine, and has risen since last week’s invasion.

Supplies via a main pipeline to Slovakia’s Velke Kapusany station remain high and Gazprom closed some capacity on Thursday to send gas to Mallnow station in Germany. Gazprom said it was sending gas to Europe via Ukraine at the request of its customers.

Europe imported more liquefied natural gas (LNG) this year than usual. While LNG imports could help reduce Europe’s dependence on Russian gas, European buyers will be in competition with those in Asia who will also start replenishing their stocks over the summer.

Gas consumption in China was rising before the conflict due to the country’s effort to get rid of coal.