Oil rises as investors mull effect of about Russian ban
Prices are likely to remain at elevated levels as ‘the current crisis will not be resolved in the foreseeable future’ , says Tamas Varga from PVM
09 March 2022 - 11:44
byAlex Lawler
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London — Oil rose towards $130 a barrel on Wednesday, supported by concern of a potential supply shock as the US banned Russian oil imports and amid signs that some buyers are already steering clear.
The US on Tuesday imposed a ban on Russian oil imports, Britain said it would phase them out and Shell said it would stop buying Russian crude.
JPMorgan estimated about 70% of Russian seaborne oil was struggling to find buyers.
“What is obvious is that the current crisis will not be resolved in the foreseeable [future] and consequently oil prices are expected to remain at elevated levels,” said Tamas Varga of oil broker PVM.
Brent crude was up $1.68, or 1.3%, at $129.66 a barrel at 9.05am GMT. US West Texas Intermediate (WTI) was up $1.60, or 1.3%, to $125.30.
Oil has surged since Russia, the world’s second-largest crude exporter, launched what it called a “special operation” in Ukraine. Brent hit $139 on Monday, its highest since 2008.
One potential source of extra oil supply is Iran, which has been in talks with Western powers for months on restoring a deal which lifted sanctions on Iran in return for curbs on its nuclear programme.
But the talks have been complicated by a last-minute demand from Russia. Iran’s chief negotiator in the Vienna talks returned to the Austrian capital on Wednesday.
Amid the concern of supply shortages, there are signs the market is not short of oil yet.
US crude inventories rose by 2.8-million barrels, according to market sources citing figures from the American Petroleum Institute, an industry group, on Tuesday. Official US inventory figures are due at 3.30pm GMT.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Oil rises as investors mull effect of about Russian ban
Prices are likely to remain at elevated levels as ‘the current crisis will not be resolved in the foreseeable future’ , says Tamas Varga from PVM
London — Oil rose towards $130 a barrel on Wednesday, supported by concern of a potential supply shock as the US banned Russian oil imports and amid signs that some buyers are already steering clear.
The US on Tuesday imposed a ban on Russian oil imports, Britain said it would phase them out and Shell said it would stop buying Russian crude.
JPMorgan estimated about 70% of Russian seaborne oil was struggling to find buyers.
“What is obvious is that the current crisis will not be resolved in the foreseeable [future] and consequently oil prices are expected to remain at elevated levels,” said Tamas Varga of oil broker PVM.
Brent crude was up $1.68, or 1.3%, at $129.66 a barrel at 9.05am GMT. US West Texas Intermediate (WTI) was up $1.60, or 1.3%, to $125.30.
Oil has surged since Russia, the world’s second-largest crude exporter, launched what it called a “special operation” in Ukraine. Brent hit $139 on Monday, its highest since 2008.
One potential source of extra oil supply is Iran, which has been in talks with Western powers for months on restoring a deal which lifted sanctions on Iran in return for curbs on its nuclear programme.
But the talks have been complicated by a last-minute demand from Russia. Iran’s chief negotiator in the Vienna talks returned to the Austrian capital on Wednesday.
Amid the concern of supply shortages, there are signs the market is not short of oil yet.
US crude inventories rose by 2.8-million barrels, according to market sources citing figures from the American Petroleum Institute, an industry group, on Tuesday. Official US inventory figures are due at 3.30pm GMT.
Reuters
JSE gains ground as traders maintain focus on Ukraine
Blackout-plagued JSE faces mixed Asian markets as US bans Russian oil
Market data — March 8 2022
MARKET WRAP: JSE joins sell-off as war escalates
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