Reaches $ 120 for oil – Record at 198 euros for gas

LAST UPDATE: 17.15

The intense oil rally leads to prices as high as $ 120 a barrel, as buyers avoid Russian crude after the invasion of Ukraine, while the OPEC + team is doing its best to … ignore the war, which started a by its key members.

In particular, the April delivery WTI is now slightly stronger against 0.6% and moves to 111,528 dollars a barrel, but at the high of the day it had reached up to $ 116.57.

At the same time, a global benchmark, brent sees the May contract to be strengthened by 0.74% στα $ 113.77but having reached intra-conference up to $ 119.84.

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.

In particular, the gas contract in the Netherlands (TTF) reached today up to 198 euros per megawatt hour with an increase of more than 20%, while it finally closed at 165.75 euros.

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.