Crude Oil is Now Above $112 as Ukraine Conflict Offsets Iran Supply Hope

081119-N-0075S-006 INDIAN OCEAN (Nov. 19, 2008) The Liberian-flagged oil tanker MV Sirius Star is at anchor Wednesday, Nov. 19, 2008 off the coast of Somalia. The Saudi-owned very large crude carrier was hijacked by Somali pirates Nov. 15 about 450 nautical miles off the coast of Kenya and forced to proceed to anchorage near Harardhere, Somalia. U.S. Navy photo by Aviation Warfare Systems Operator 2nd Class William S. Stevens (Released)

Oil is now above $112 a barrel on Friday in a volatile session as fears over disruption to Russian oil exports in the face of Western sanctions is offsetting the prospect of more Iranian supplies in the event of a nuclear deal with Tehran.

Brent crude rose as high as $114.23 a barrel and by 1050 GMT up by $1.97 from $112.43. U.S. West Texas Intermediate (WTI) added $2.21, or 2.1%, to $109.88 after touching a high of $112.84.

Crude oil has hit its highest in a decade this week and prices are set to post their strongest weekly gains since the middle of 2020, with the U.S. benchmark up more than 18% and Brent 13%.

Your Friends Also Read:  Business Edge | Exploring Ghana’s Crude Oil Story

Signs of an escalation in the Russia-Ukraine conflict, with reports of a fire at a Ukrainian nuclear power plant, spooked markets before authorities said the fire in a building identified as a training centre had been extinguished.

On Thursday prices swung in a $10 range but settled lower for the first time in four sessions as investors focused on the revival of the Iran nuclear deal, which is expected to boost Iranian oil exports and ease tight supplies.

Still, Iran’s Foreign Minister Hossein Amirabdollahian said on Friday that the West’s “haste” to reach a nuclear agreement “cannot prevent the observance of Iran’s red lines”, including economic guarantees.

Your Friends Also Read:  Kenya’s Safaricom to Suspend Huawei 5G Mobile Network

Oil prices are rising on fears that Western sanctions over the Ukraine conflict will disrupt shipments from Russia, the major global  exporter of crude and oil products combined.

Trading activity for Russian crude has slowed as buyers hesitate to make purchases because of sanctions against Russia while U.S. President Joe Biden comes under growing pressure to ban U.S. imports of Russian oil. Incidentally, no sanctions have been placed on Russia’s crude oil but many traders are avoiding it in their futures contract since the invasion of Ukraine.

All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from News Central TV.
Your Friends Also Read:  Nigeria's Ikeja Electric Reverses Tariff



Leave a Reply

Previous Article
Qatar 2022 Eguavoen Lists Musa, Ekong, 30 Others in Provisional Squad to Battle Ghana (News Central TV)

Qatar 2022: Eguavoen Lists Musa, Ekong, 30 Others in Provisional Squad to Battle Ghana

Next Article
Emefiele, Lamido to Headline Islamic Finance Discourse (News Central TV)

Emefiele, Lamido to Headline Islamic Finance Discourse

Related Posts
Powered by Live Score & Live Score App