Sign Up for FREE Daily Energy News
Canadian Flag CDN NEWS  |  US Flag US NEWS  | TIMELY. FOCUSED. RELEVANT. FREE
  • Stay Connected
  • linkedin
  • twitter
  • facebook
  • youtube2
BREAKING NEWS:

Vista Projects
Hazloc Heaters
Copper Tip Energy Services
Vista Projects
Copper Tip Energy
Hazloc Heaters


Oil Recovers With Market Gripped by Huge Price Swings


English Español 简体中文 हिन्दी Português
These translations are done via Google Translate
(Bloomberg) Brent crude rebounded after slumping the most in almost two years as the fallout from Russia’s invasion of Ukraine continues to rattle what one analyst called a “panic-stricken” market.

Futures in London topped $117, while those in New York rose near $114 a barrel. Markets have been panicky since war broke out, seeing sharp intraday swings on headlines from Ukraine and OPEC+ members. On Thursday, the foreign ministers of Russia and Ukraine will talk in Turkey as both sides repeat their demands in order to call a halt to the fighting.

That follows the first signs of disunity in OPEC+ after the United Arab Emirates called on the group Wednesday to boost output faster than planned. The nation’s energy minister appeared to temper that message a few hours later. OPEC+, which counts Russia as a key member, has resisted calls from consumers to pump more, arguing that the surge in prices is driven by geopolitical tensions rather than a supply shortage.

“OPEC+ will have to jump through many hoops to agree to deviate from its current road map,” said Vandana Hari, the founder of Singapore-based Vanda Insights, describing the market as “panic-stricken.”

GLJ
Futures have rallied since Russia's invasion of Ukraine

Oil rallied earlier this week to the highest since 2008, in part due to fears that the loss of Russian flows may stretch an already tight market. Prices also surged as the U.S. moved to ban imports, which if followed by other Western nations, could see crude hit $240 a barrel this summer, according to Rystad Energy. Still, the heads of OPEC and Chevron Corp. said there’s no shortage of oil, while Iraq insisted there’s no need to ramp up output more than planned.

GLJ

The invasion is reverberating through refined products markets as well, with diesel in Europe and the U.S. seeing unprecedented swings this week. Retail gasoline prices on both sides of the Atlantic have jumped to records in recent days.

Prices
  • West Texas Intermediate for April rose 4.7% to $113.84 a barrel at 10:37 a.m. in London.
  • Brent for May settlement gained 5.4% to $117.19.

In a further sign of the strain on global diesel markets, Saudi Arabia was seeking to purchase an unusually large amount of diesel, in a surprise move for a country that is usually a net exporter. Stockpiles of the distillate fuels in the U.S. also fell sharply last week.



Share This:



More News Articles


GET ENERGYNOW’S DAILY EMAIL FOR FREE