Title: Oil Up, Fears of Russian Supply Disruption Outweigh Potential Iranian Supply
Mar 03, 2022 11:22PM ET
Oil prices rose in Asia on Friday morning as fears of a disruption to Russian oil exports eclipsed the possible revival of an Iranian nuclear deal and increased supply.
By 11:15 p.m. ET, Brent oil futures were up 1.51% at $112.13, while WTI futures were up 1.9% at $109.72, having earlier hit a high of $112.84.
Oil prices have been on an upward trend recently and rose again after signs that the Russian invasion of Ukraine was intensifying. In the latest development, Russia attacked the Zaporizhzhya power plant in Enerhodar, Ukraine, which is reportedly on fire.
The West imposed sanctions on Russia after it invaded its neighboring country on February 24, and fears that this could disrupt oil supplies from Russia also contributed to the rise in oil prices. Buyers appear to be hesitant due to the sanctions, causing trade in Russian crude to appear frozen. Russia is the world's largest exporter of crude oil and oil products.
Although prices fluctuated in a $10 range on Thursday, they eased for the first time in four sessions as investors focused on reviving an Iranian nuclear deal that could boost Iranian oil exports and ease tight supplies.
After hitting a decade high earlier this week, WTI futures are up more than 22% and Brent futures are up 16%, giving the black liquid its best weekly gains since mid-2020.
Meanwhile, talks to revive the 2015 nuclear deal with Iran appear to be nearing their climax. A ministerial meeting could reportedly take place soon, and a UN report on Thursday showed that Iran has amassed almost enough enriched uranium for a bomb if it continues to purify it.