Oil prices rallied on Friday at the end of the third week of volatile trading following slow progress in Russia-Ukraine talks, which raised the possibility of tougher sanctions and a longer cut in oil supplies.
Despite battlefield failures and punitive Western sanctions, Russian President Putin has shown few signs of retreating.
The fourth day of talks between Russian and Ukrainian negotiators took place via video, but the Kremlin said an agreement had not yet been reached.
Brent rose $ 2.75, or 2.6 percent, to $ 109.39 a barrel, after rising 9 percent on Thursday, its highest level since mid-2020.
West Texas Intermediate was up $ 2.93, or 2.9 percent, at $ 105.91 a barrel, after rising 8 percent on Thursday.
Despite the recovery, both Brent and WTI are expected to end the week with a drop of about 3%, and have fallen from the 14-year highs they reached two weeks ago.
“I expect more volatility. There is still a lot of uncertainty out there,” said Justin Smirk, chief economist at Westpac.
Shrinking supply due to sanctions on Russia, nuclear talks with Iran, declining inventories and concerns about rising coronavirus cases in China have hit demand and led to this week’s ups and downs.
Analysts at RBC Capital say the losses in Russian oil exports are likely to prove to be long-lasting and that there will be little potential for compensation.
Source: Capital
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