Oil inches closer to $100

LONDON:

Oil rose to its highest since 2014 on Tuesday after Moscow ordered troops into two breakaway regions in eastern Ukraine, tempered by a declaration from Germany’s Chancellor that the nation would not certify the $11 billion Nord Stream 2 pipeline.

Germany put the certification of the Nord Stream 2 gas pipeline from Russia on ice while the United States and European Union discussed potential sanctions as Ukraine reported continued shelling in east Ukraine. 

“Markets are viewing the situation as a de-escalation of the crisis, and are hopeful conflict ends here,” said Bob Yawger, Director of Energy Futures at Mizuho.

Brent crude, the global benchmark, was up $1.26, or 1.3%, at $96.65 by 11:13 AM EDT (1613 GMT), having earlier reached its highest since September 2014 at $99.50.

US West Texas Intermediate (WTI) crude jumped by $1.87, or 2.1%, from Friday to $92.94, with the market having been closed on Monday for a public holiday. WTI also touched a seven-year high on Tuesday as it peaked at $96.

The Ukraine crisis has added further support to an oil market that has surged on tight supplies as demand recovers from the Covid-19 pandemic.

Published in The Express Tribune, February 23^rd, 2022.

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