Rise of more than 4.5% for oil – At + 15% for natural gas

LAST UPDATE: 10.27

Oil prices have risen sharply by more than 5% as markets appear to be increasingly worried about an energy crisis following new Western sanctions imposed on Russia over its invasion of Ukraine.

In particular, the American WTI crude delivery in April is up 4.56% at $ 95.77 a barrel, while the global benchmark, Brent oil delivery in May is up 4.59% to $ 98.44 a barrel.

The United States and the European Union have announced that they are excluding some major Russian banks from the international SWIFT interbank payment system and have personally targeted Russian President Vladimir Putin and Foreign Minister Sergei Lavrov.

“The expulsion of some Russian banks from the SWIFT system will inevitably lead to disruptions in the supply of oil and gas, as buyers and sellers will try to track how they will navigate under the new rules,” said Andy Lipow, president Houston-based Lipow Oil Associates.

The European Union also banned all transactions with the Russian central bank, which led to a free fall in the ruble: according to Bloomberg, it fell by almost 30% in international foreign exchange markets earlier today.

“The exclusion of some Russian banks from SWIFT could disrupt the oil supply, as buyers and sellers will want to see where we stand with the new rules,” said Andy Lipau, president of Lipow Oil Associates in Houston.

The markets will be following closely the OPEC + summit the day after Wednesday, in which the thirteen member states of the Organization of the Petroleum Exporting Countries, led by Saudi Arabia, and their ten partners, led by Russia, are taking part. It is expected to discuss plans to increase production.

The agency has already agreed to gradually increase production every month, but the Ukrainian crisis is not ruled out to overturn any planning that had been made before the outbreak.

“The price increase we are seeing today was guaranteed, given the deteriorating situation in Ukraine,” said Vandana Hari, founder of Vanda Insights. “Markets need to be prepared for a series of upheavals that will follow,” he told Bloomberg.

Saudi Arabia’s Crown Prince Mohammed bin Salman and French President Emmanuel Macron discussed the effects of the Ukraine crisis on energy markets on Sunday, according to Saudi Arabia-based satellite channel Ekhbariya TV.

Prince Salman, during a telephone conversation with President Macron, stressed the kingdom’s willingness to stabilize and balance the oil markets, as well as its commitment to the relevant OPEC + agreement, according to the report. TV channel.

Up to 36% jump in gas in Europe

The price of natural gas in Europe jumped up to 36% on Monday, against the background of the decision of almost all European countries to impose harsh sanctions on Vladimir Putin’s Russia, in order to put pressure on the withdrawal of Russian forces that have invaded Ukraine.

Europe receives about a third of the gas it uses from Russia, with many of the deliveries being made through pipelines running through Ukraine.

“Additional sanctions are likely to provoke countermeasures by Russia, which could lead to cuts in gas supplies to Western Europe,” said Neil Shearing, chief economist at Capital Economics.

More specifically, the Dutch gas contracta benchmark for the European market, reached – with a rise of 36% – 128 euros per megawatt hour, later limiting its rise to 15%, at 109 euros, around 9.45 a.m. Greek time in Amsterdam. The price of electricity in Germany for next year reached 13%, at 165 euros per megawatt hour.