Oil Price Rises to $130 After US Ban on Russian Crude Imports

Oil prices rose on Wednesday on fears of a possible supply crisis following the US ban on imports of Russian crude, and signs that some buyers are already rejecting them.

Brent crude futures were up $2.91, or 2.27%, at $130.89 a barrel by 0520 GMT, after rising 3.9% the day before.

US West Texas Intermediate (WTI) crude futures were up $2.34, or 1.89%, at $126.04 a barrel, after also rising 3.6% on Tuesday.

US President Joe Biden on Tuesday imposed an immediate ban on imports of Russian oil and other energy products, with Britain saying it would phase out imports of Russian oil until the end of 2022, in response to Russia’s invasion of Russia. Ukraine.

Shell announced on Tuesday that it would stop buying Russian crude and phase out its stake in all Russian hydrocarbons, becoming one of the first major Western oil companies to leave Russia entirely.

Meanwhile, Goldman Sachs estimated that more than half of Russian oil exported from ports remained unsold, while JP Morgan estimated that around 70% of Russian oil shipped by sea was struggling to find buyers.

Oil prices have risen more than 30% since Russia, the world’s second largest crude exporter, launched what it called a “special operation” in Ukraine. Fears of further disruptions to oil supplies in the face of escalating sanctions on Moscow have fueled buying, analysts say.

“Upward pressure on oil prices continues to strengthen as the market digests the implications of the US import ban on Russian barrels and awaits details of Moscow’s export embargoes.said Vandana Hari, founder of oil market analysis provider Vanda Insights.

Oil prices rose to their highest levels since July 2008 on Monday, with Brent hitting $139.13 a barrel and WTI hitting $130.50.

“In addition to the effects of the announcement by the United States and the United Kingdom, the fear of further interruptions in supply from Russia due to the intensification of sanctions on Moscow prompted new purchases”, said Hiroyuki Kikukawa, chief research officer at Nissan Securities.

“But Monday’s highs will likely become a short-term top as speculative buying is expected to slow soon and Northern Hemisphere countries head into spring when fuel demand declines.”, he added.

US crude oil stocks rose by 2.8 million barrels in the week to March 4, versus analysts’ forecast for a decline, but gasoline and distillate stocks fell, according to market sources. they cite figures from the American Petroleum Institute on Tuesday.

RECOMMENDED VIDEO