“It looks like all the winds are blowing to the upside,” said Phil Flynn of brokerage Price Futures Group. “It is very difficult to sell in this market given the headlines”added Stephen Schork, analyst and author of the Schork Report.
According to the latter, among the factors that boosted prices, the prospect of new sanctions against Russia after a series of summits scheduled for Thursday in Brussels. Even before these meetings, US President Joe Biden has already promised new Western sanctions against Moscow, although he did not provide details.
The leaders of the European Union and NATO will meet in Brussels on Thursday to strengthen their response to Russia’s invasion of Ukraine.
Oil prices also rose when the Caspian Pipeline Consortium export terminal in the Black Sea stopped cargoes. Russia warned that exports could be reduced by 1 billion barrels per day, but the disruption could be greater if all shipments through the terminal are stopped.
Other bullish signs come from the American Petroleum Institute which showed crude inventories sank by 4.3 million barrels last week. If confirmed in official data, it would be the third drop in four weeks.
Russian Deputy Prime Minister Alexander Novak said on Wednesday that world energy markets will collapse if sanctions are imposed on russian oil and gasone of the main exporters of hydrocarbons.
“Russia is the largest supplier, the share of Russian energy resources in world markets is around 40%. Obviously, the oil and gas markets would collapse without Russian hydrocarbons if sanctions were imposed”Novak said.
Novak said Europe could face a shortage of diesel, with inventories now at the lowest level since 2008. He also said the ban on the Nord Stream 2 pipeline to Germany shows a lack of understanding of energy market balance and will fuel inflation. .
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
