Oil prices surged 9% on Tuesday, as a global agreement to release crude reserves failed to calm fears about supply disruptions from Russia’s invasion of Ukraine, and instead underscored concerns about growing disruptions.
Members of the International Energy Agency (IEA), which include the United States and Japan, agreed to release 60 million barrels of crude from their reserves to try to quell the sharp increase in prices that has pushed major benchmarks past $100 a barrel.
However, the news of that release - equivalent to less than one day of worldwide oil consumption - only underscored the market’s fear that supply will be inadequate to cover growing disruptions to the crude market.
Brent futures rose $8.80, or 9%, to $106.77 a barrel by 11:43 AM EST (1643 GMT), heading for their biggest daily percentage gain since March 2021.
US West Texas Intermediate (WTI) crude rose $9.89, or 10.3%, to $105.61, on track for its biggest daily percentage gain since May 2020.
Brent hit its highest since July 2014 and WTI its highest since June 2014. In addition to crude, US distillates and gasoline futures also hit their highest since 2014.
Published in The Express Tribune, March 2nd, 2022.
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