Oil prices extended their gains to more than 5% during trading on Tuesday, with Brent crude rising above $104, as fears of a possible supply disruption with the Russian invasion of Ukraine overshadowed talk of a coordinated global release of crude stocks to calm markets.
Oil prices ended their trading, yesterday, with a rise of 5%, with strong monthly gains, amid anticipation of the impact of the Russian-Ukrainian war – which has entered its sixth day – on supplies.
Oil Prices Today
The price of futures contracts for West Texas Intermediate crude – for delivery in April – rose by 5.6%, to reach $ 101.1 a barrel.
The prices of Brent crude futures contracts – for delivery in May 2022 – also rose by 6%, recording 104.07 dollars per barrel.
And during last February, both the benchmark and US crude recorded gains of about 13% and 8.6%, respectively, which is the third monthly rise in a row.
“Concerns about tight supplies have pushed prices up as peace talks between Russia and Ukraine ended on Monday and officials returned to capitals for further consultations, indicating that a resolution of the conflict is not imminent,” said Louise Dixon, senior oil market analyst at Rystad Energy. .
Major oil and gas companies, including BP and Shell, have announced plans to exit Russian operations and joint ventures.
Russian oil buyers are struggling with payments and the availability of ships as Western sanctions are imposed in response to the invasion of Ukraine.
Meanwhile, Asian factories maintained a brisk recovery in February amid signs that the coronavirus pandemic was having less impact on business; This indicates an increase in the demand for oil.
Strategic Oil Reserves
Market sentiment helped the US and its allies discuss a coordinated release of crude stocks to ease supply disruptions.
And the media reported that this version may reach between 60 million and 70 million barrels.
“This potential release limits higher oil prices for the time being,” analysts at the Commonwealth Bank of Australia wrote in a note, Reuters reported.
The International Energy Agency is preparing to hold an extraordinary ministerial meeting, today, Tuesday; To discuss the role that its members can play in stabilizing oil markets.
Russia, which describes its actions in Ukraine as a “special operation,” exports 4-5 million barrels per day of crude oil, and 2-3 million barrels per day of refined products.
The Organization of Petroleum Exporting Countries (OPEC) and other producers – including Russia – will meet in the OPEC + alliance, tomorrow, Wednesday, and are expected to maintain a gradual increase in supplies.
According to a report by Bloomberg Agency, the OPEC + alliance is expected to decide to continue the gradual increase in oil production of 400,000 barrels per day each month.