Title: Oil Up, Sanctions on Russia Drive Supply Fears
Feb 25, 2022 12:02AM ET
Oil prices rose in Asia on Friday morning as Russia's incursion into Ukraine worried the global supply situation. Investors are also bracing for the potential impact of trade sanctions against Russia, the world's third-largest crude exporter.
At 11:58 p.m. ET, Brent oil futures rose 2.38% at $97.69, after reaching a high of $101.87. WTI futures went up 2.24% to $94.89.
The Russian invasion of Ukraine on Thursday sent the black liquid climbing above $100 for the first time since 2014, with Brent futures rising to $105. Tens of thousands of Ukrainians are fleeing after the biggest attack on a European state since World War II.
The US responded to the invasion by imposing more sanctions on Russia. Although a State Department official told Reuters news agency that the sanctions "do not and will not target oil and gas flows," oil prices remain high.
Although the United States has indicated that it may consider releasing strategic oil stocks to counter rising oil prices, Dhar's note suggests that a drawdown of strategic oil stocks is likely to provide only temporary relief from high oil prices.
Meanwhile, U.S. crude supply data released Thursday by the U.S. Energy Information Administration showed an increase of 4.515 million barrels in the week ended Feb. 18. Investing.com forecasts were for an increase of 442,000 barrels, compared with an increase of 1.121 million barrels in the previous week.
The American Petroleum Institute crude supply data released the previous day showed a build of 5.983 million barrels.