Oil's wild week sees biggest gain since 2020 amid attack on Ukraine
BNN Bloomberg
Oil headed for the biggest weekly surge in almost two years after Russia’s invasion of Ukraine roiled global markets and fueled fears of a supply crunch, driving prices to their highest since 2008.
Oil headed for the biggest weekly surge in almost two years after Russia’s invasion of Ukraine roiled global markets and fueled fears of a supply crunch, driving prices to their highest since 2008.
Futures in New York rose 0.9 per cent after swinging through a US$10 range and closing below US$108 a barrel Thursday on signs that an Iranian nuclear deal may be near. Ukrainian officials said Russian forces attacked a nuclear plant early Friday -- Europe’s biggest -- which led to a spike in oil and other commodities before prices pulled back slightly. Crude is up 19 per cent this week.
The International Energy Agency warned that global energy security was under threat and a planned release of emergency oil reserves by the U.S. and other major economies failed to quell supply concerns. JPMorgan Chase & Co. said global benchmark Brent crude could end the year at US$185 a barrel if Russian supply continues to be disrupted. It was just shy of US$120 on Thursday.
The invasion has reverberated throughout the energy sector. Global oil majors including BP Plc, Shell Plc and Exxon Mobil Corp. are exiting Russia, buyers of its crude are seeking alternatives and shipping costs are spiking. Russia’s Lukoil PJSC has called for a “fast resolution of the military conflict.”
While official sanctions haven’t been imposed on Russian energy exports, buyers are shunning the nation’s crude as they navigate financial penalties. Germany and the White House oppose a ban on Russian oil imports, though U.S. lawmaker support to prohibit shipments into America is growing.
