The Crude oil prices continued to trade at levels last seen more than seven years ago as investors remain focused on the threat of a Russian attack on Ukraine.
As of 1325 hours GMT, Brent, the international benchmark for two-thirds of the world’s oil, gained $0.50 (+0.56 percent) to reach $90.46 a barrel. On the other hand, the US West Texas Intermediate (WTI) price reached $87.82 a barrel, up by $0.47 (+0.54 percent).
The price for Opec Basket was recorded at $87.35 a barrel with a decrease of 0.72 percent, Arab Light was available at $88.76 a barrel with an increase of 1.45 percent and the price of Russian Sokol jumped to $90.48 a barrel with 0.95 percent increase.
Oil prices rose amid concerns that supplies could become tight due to Ukraine-Russia tensions, threats to infrastructure in the United Arab Emirates and struggles by Opec+ to hit its targeted monthly output increase. The American Petroleum Institute (API) estimated the inventory draw this week for crude oil to be 872,000 barrels after analysts predicted a draw of 400,000 barrels. In the week prior, the API reported a build in crude oil inventories of 1.404 million barrels after analysts had predicted a draw of 1.367 million barrels.
Crude oil wobbled after Wednesday’s close as the Federal Reserve teed up a March rate increase; however, it soon found its footing. Russia has massed around 100,000 troops on Ukraine’s border as it demands that NATO never admit Ukraine and other ex-Soviet nations as members and that the alliance roll back troop deployments in other former Soviet bloc nations — demands the U.S. and its allies have deemed non-starters.
Oil has also been lifted as demand prospects continue to improve due to a strong pace of economic growth across the world. On the other hand, this price area has managed to act as a resistance in the past and unless there is a significant catalyst, prices might struggle to remain at these levels for an extended period as governments attempt to contain rising energy prices.