Site icon News Central TV | Latest Breaking News Across Africa, Daily News in Nigeria, South Africa, Ghana, Kenya and Egypt Today.

Oil Price Rise as Russian Supply Concerns Increase Amid Sanctions

Oil Rig

Oil prices has surged on Wednesday due to supply disruption fears mounting following hefty sanctions on Russian banks amid the intensifying Ukraine conflict, while traders scrambled to seek alternative oil sources in an already tight market.

Brent crude futures rose by as much as $8 and touched as high as $113.02 a barrel, the highest since June 2014, before easing to $111.75 at 0804 GMT.

The U.S. West Texas Intermediate (WTI) crude futures were up $7.24, or 7%, to $110.67 a barrel, after earlier hitting the highest since August 2013.

The backwardation in the Brent futures contract, when prompt prices exceed later dated supply, surged to the highest ever according to data going back to 2004. The premium of the first-month Brent future to the sixth-month contract rose to as much as $18.55 a barrel.

Exit mobile version