Brent oil from the North Sea in its May contract is agreed at US$101.84 with a jump of almost 9%, while West Texas Intermediate (WTI) crude oil, which operates in the New York futures market in its April contract is above $100 a barrel, up 8%. After the escalation of the conflict, Brent oil reached US$103, its highest level since August 2014. Since the tension between the two countries began, the cost of a barrel has increased by 25%.
Russia supplies 10% of the world’s oil, a third of Europe’s gas and, together with Ukraine, accounts for 29% of world wheat exports and 80% of sunflower oil and 19% of corn exports. Russia is also a major producer of aluminum, nickel, platinum, palladium, uranium, titanium, coal, wood, and fertilizers.
The country supplies significant volumes of gas to Europe through Ukraine, mainly to countries such as Austria, Italy and Slovakia, as well as Germany and Poland, although the latter obtain most of the Russian gas through other routes. Russia launched an all-out invasion of Ukraine by land, air and sea on Thursday, the biggest state-on-state attack in Europe since World War II. Russia’s state pipeline monopoly Gazprom said supplies through Ukraine were normal and Ukraine said its energy infrastructure had not been damaged. Austria also said it was receiving normal gas deliveries.
At least 10 oil traders with Western oil majors and brokerages said there have been no interruptions in the flow of Russian oil, including through the Black Sea. Russia, Kazakhstan, Azerbaijan and Turkmenistan send between 2 and 3 million barrels per day or between 2% and 3% of world supplies to markets through the Black Sea. Turkey, a member of the western NATO military alliance, has control over the Bosporus that connects the Black and Mediterranean seas.
This Thursday, the movement of ships in the Azov Sea was suspended, although the Black Sea ports, which account for the bulk of grain and oilseed exports, remained open.
Source: Ambito
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