Oil eases from seven-year highs

Oil eased on Monday from its highest in more than seven years as Ukraine hinted at possible concessions to Russia that could alleviate tensions between the two countries that Western governments say are on the brink of war. Brent crude was down $0.6, or 0.6%, at $93.84 a barrel by 1440 GMT after touching its highest since October 2014 at $96.16. US West Texas Intermediate (WTI) crude fell $0.47, or 0.5%, to $92.63 after hitting $94.94, the loftiest since September 2014. “Market participants are concerned that a conflict between Russia and Ukraine could disrupt supply,” said UBS commodities analyst Giovanni Staunovo. He said the oil market is sensitive to any news of potential supply disruptions because oil inventories are low and producers’ spare capacity is expected to fall further. Comments from the United States about an imminent attack by Russia on Ukraine have rattled global financial markets. 

Published in The Express Tribune, February 15^th, 2022.

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