Home NewsCommodities News Oil Price: Oil jumps on lack of progress in Russia-Ukraine talks

Oil Price: Oil jumps on lack of progress in Russia-Ukraine talks

by WOOWinvest
0 comment
Oil Price: Oil jumps on lack of progress in Russia-Ukraine talks

MELBOURNE: Oil prices extended gains on Friday after a third straight week of volatile trading ended as little progress was made in peace talks between Russia and Ukraine, fuelling fears of tougher sanctions and prolonged disruptions to oil supplies.

Russian President Vladimir Putin’s speech on Thursday warned that “traitors and scum” domestically helping the West would be spit out like mosquitoes, adding to market jitters over the protracted conflict.

Brent crude futures were up $2.43, or 2.3%, at $109.07 a barrel by 0141 GMT, after surging nearly 9% on Thursday, the biggest percentage gain since mid-2020.

U.S. West Texas Intermediate (WTI) crude futures rose $2.75, or 2.7%, to $105.73 a barrel, after rising 8% on Thursday.

Despite the rally, both benchmark contracts are set to end the week down about 4% in a trading range of $16. Prices have retreated from 14-year highs hit nearly two weeks ago.

“I still expect more volatility. There’s still a lot of uncertainty,” said Justin Smilke, senior economist at Westpac in Sydney.

Sanctions on Russia, stalled nuclear talks with Iran, dwindling oil inventories and concerns about a surge in COVID-19 cases in China hitting demand have all propelled this week’s roller coaster.

Analysts said Putin’s remarks, reports by a Kremlin spokesman that the peace talks had made significant progress “wrong” and U.S. President Joe Biden calling Putin a “war criminal” all sparked a buying spree on Thursday.

Volatility has spooked participants out of the oil market, which in turn could exacerbate price swings, traders, bankers and analysts said.

“In such a tight market and such an illiquid paper market — you’re going to have some volatility,” Smirk said.

You may also like

Leave a Comment

Our Mission is to help you make better trading decisions by providing actionable investing content, comprehensive tools, educational resources and assist you in making more money in the stock market.

Latest News


Subscribe my Newsletter for new blog posts, tips & new photos. Let's stay updated!

@2022 – All Right Reserved. Designed and Developed by WOOW Invest

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy