The barrel of Brent from the North Sea, benchmark oil for Argentina and Europe, rose 3.12% to $116.45 a barrel, after reaching $119.84. Since 2012, it has never reached the threshold of 120 dollars.
For its part, the West Texas Intermediate (WTI), listed on the New York Stock Exchange, gained 3.16%, to 114.09 dollars per barrel, after having reached 116.57 dollars, its highest level since September. from 2008.
“The price reaction reflects the cause,” namely the war in Ukraine, and a “risk premium” on the Russian giant’s oil supply, but “the extent of price movements is often magnified by uncertainty (…) and the adjustment of speculative positions,” says Tamas Vargas, an analyst at PVM.
“There are legitimate fears about the supply strain generated by the crisis in Ukraine and the fact that the occupier and the occupied play a key role in the global energy market,” he adds.
Russia is the world’s second largest oil exporter.
“Although Western sanctions” in response to the Russian invasion of Ukraine “have stopped short of banning Russian exports, the country’s supply of crude oil and oil products has clearly been affected by ‘self-sanctions’ or because financial sanctions make it impossible to oil purchases with Russia,” he concludes.
A week after launching their invasion of Ukraine, Russian forces seized its first major city, Kherson, shortly before a second round of ceasefire talks Thursday morning between Russian and Ukrainian negotiators.
Source: Ambito
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