Brent reached $ 90 a barrel for the first time since 2014. | Oil and gas news


Rising tensions in the Russia-Ukraine conflict are causing market turmoil over possible disruptions in oil supplies.

from Bloomberg

Oil markets have risen along with a broader market recovery, as growing tensions in the Russia-Ukraine conflict have raised market concerns about potential supply disruptions.

New York futures rose 2 percent to $ 90 a barrel for the first time in seven years on Wednesday. Stocks at the largest oil center in the United States fell 1.8 million barrels for the third week in a row. The structure of the oil market has risen in recent days, signaling limited supply.

Prices are also driven by growing concerns about a possible Russian invasion of Ukraine, with US President Joe Biden saying he would consider sanctioning Vladimir Putin if the Russian leader orders an invasion. While the potential conflict poses major risks to financial markets – especially energy products such as natural gas and oil – Goldman Sachs’ main option is to avoid supply disruptions.

Brent graphics

Crude oil has a volatile week, falling on Monday and then recovering on Tuesday. Prices have been at their peak for seven years, with demand continuing to recover from the pandemic as mobility increases. A number of Wall Street banks, including Goldman Sachs Group Inc., predict that oil will reach $ 100 a barrel this year as the global market tightens.

“The market has generally been in short supply since mid-2020, thanks to cuts in OPEC + and the continued recovery in oil demand,” said Helge Andre Martinsen, senior oil analyst at DNB ASA. “We fully recognize that the world is not running out of oil resources, but we may enter a shrinking oil market caused by too little investment and a rapid recovery in oil demand.

Prices

  • Brent for the March agreement rose 2% to $ 89.97 a barrel at 10:50 a.m. in New York.
  • West Texas Intermediate for delivery in March rose 2% to $ 87.30 a barrel.

Also in focus on Wednesday is the Federal Reserve’s first policy meeting of the year. Officials are expected to reaffirm their commitment to tackling rising inflation by ending stimulus and raising interest rates in 2022.

Related coverage:

  • More Chinese are joining a great trip to their hometowns for the Lunar New Year holiday, helping the search for oil.
  • Rising energy prices and tight cost controls have pushed Big Oil’s cash flow to a new high, luring investors back.
  • The Emir of Qatar will visit President Joe Biden on January 31 to discuss issues, including how to ensure the stability of global energy supplies.





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