Crude Oil Prices Today: Crude Oil Rates Above $116 As Supply Issues Persist

SINGAPORE: Oil prices extended their rally on Thursday, with Brent rising above $116 a barrel, as trade disruptions and shipping issues related to Russian sanctions over the Ukraine crisis sparked concerns over the Ukraine crisis. supplies as U.S. crude inventories fell to multi-year lows.

The Organization of the Petroleum Exporting Countries and their allies, including Russia, decided to maintain a production increase of 400,000 barrels a day in March despite the price hike, ignoring the Ukraine crisis during their talks and snubbing the consumer calls for more crude.

Brent crude oil futures hit $116.83 a barrel, the highest since August 2013. The contract was at $116.60 a barrel, up $3.67 at 0112 GMT.

U.S. West Texas Intermediate crude was at $113.01 a barrel, up $2.41 after hitting a new 11-year high of $113.31 a barrel.

“The White House has ratcheted up the pressure on Russia with the announcement that it will apply export controls targeting Russian oil refining,” ANZ analysts said in a note.

“This raises fears that Russian oil supply will continue to be constrained.”

The market was reacting to Washington’s latest round of sanctions against Russia’s oil refining sector, which raised fears that Russian oil and gas exports could be the next target.

So far, he has refrained from targeting Russia’s oil and gas exports as the Biden administration weighs the impacts on global oil markets and U.S. energy prices.

Russia is the world’s third largest oil producer and largest exporter of oil to world markets, according to the International Energy Agency. Russian exports of crude oil and petroleum products reached 7.8 million barrels per day in December, the agency said.

Meanwhile, US oil inventories continued to fall. Reservoirs at the main crude hub of Cushing, Oklahoma were at their lowest since 2018, while US strategic reserves fell to a nearly 20-year low – and that was before another reported release. by the White House on Tuesday in tandem with other industrialized countries.

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Felix J. Dixon