Tokyo: oil prices On Wednesday as US sanctions increased Russian oil imports And Britain’s plan to phase them out by the end of the year has sparked concerns about dire global supply.
Brent crude futures were up $2.17, or 1.7%, at $130.15 a barrel by 0133 GMT, having jumped 3.9% the previous day.
US West Texas Intermediate (WTI) crude futures were up $1.57, or 1.3%, at $125.27 a barrel, after also rising 3.6% on Tuesday.
US President Joe Biden on Tuesday imposed immediate sanctions on Russian oil and other energy imports and Britain said it would end Russian oil imports by the end of 2022.
Oil prices have risen by more than 30% since Russia invaded Ukraine, the world’s second-largest crude exporter. Analysts said fears of further disruption in oil supplies amid mounting sanctions on Moscow fueled buying.
“In addition to the announcement effects from the US and UK, fears of further supply disruptions from Russia due to tighter sanctions on Moscow prompted new purchases,” said Hiroyuki Kikukawa, research general manager at Nissan Securities.
“But Monday’s highs will become a ceiling for the short term as speculative buying is expected to slow soon and Northern Hemisphere countries are heading towards spring when fuel demand falls,” he said.
Oil prices hit their highest level since July 2008 on Monday, with Brent rising at $139.13 a barrel and WTI at $130.50.
Behind the rally were also hopes that a return of Iranian crude to global markets was unlikely, as talks between Tehran and world powers over Iran’s nuclear program have slowed.
Analysts at Oslo-based consultancy Rystad Energy said on Tuesday that global oil prices could rise as high as $200 a barrel if Europe and the United States lift sanctions on Russian oil imports.
Still, oil prices, running at their hottest levels in 14 years, are set to cut fuel demand as the Covid pandemic reacts to a rise in pump and electricity prices by pulling back on consumer spending and travel, says Top Energy. Officials warned on Monday.
US crude stocks rose 2.8 million barrels for the week ended March 4, but gasoline and distillate stocks rose by 2.8 million barrels for the week ended March 4, ahead of analysts’ fall forecasts, market sources said on Tuesday, citing data from the American Petroleum Institute. There was a decline.
Brent crude futures were up $2.17, or 1.7%, at $130.15 a barrel by 0133 GMT, having jumped 3.9% the previous day.
US West Texas Intermediate (WTI) crude futures were up $1.57, or 1.3%, at $125.27 a barrel, after also rising 3.6% on Tuesday.
US President Joe Biden on Tuesday imposed immediate sanctions on Russian oil and other energy imports and Britain said it would end Russian oil imports by the end of 2022.
Oil prices have risen by more than 30% since Russia invaded Ukraine, the world’s second-largest crude exporter. Analysts said fears of further disruption in oil supplies amid mounting sanctions on Moscow fueled buying.
“In addition to the announcement effects from the US and UK, fears of further supply disruptions from Russia due to tighter sanctions on Moscow prompted new purchases,” said Hiroyuki Kikukawa, research general manager at Nissan Securities.
“But Monday’s highs will become a ceiling for the short term as speculative buying is expected to slow soon and Northern Hemisphere countries are heading towards spring when fuel demand falls,” he said.
Oil prices hit their highest level since July 2008 on Monday, with Brent rising at $139.13 a barrel and WTI at $130.50.
Behind the rally were also hopes that a return of Iranian crude to global markets was unlikely, as talks between Tehran and world powers over Iran’s nuclear program have slowed.
Analysts at Oslo-based consultancy Rystad Energy said on Tuesday that global oil prices could rise as high as $200 a barrel if Europe and the United States lift sanctions on Russian oil imports.
Still, oil prices, running at their hottest levels in 14 years, are set to cut fuel demand as the Covid pandemic reacts to a rise in pump and electricity prices by pulling back on consumer spending and travel, says Top Energy. Officials warned on Monday.
US crude stocks rose 2.8 million barrels for the week ended March 4, but gasoline and distillate stocks rose by 2.8 million barrels for the week ended March 4, ahead of analysts’ fall forecasts, market sources said on Tuesday, citing data from the American Petroleum Institute. There was a decline.