Oil prices are ending the week with a confident rise – US sanctions against two major Russian oil companies have raised fears of supply disruptions, pushing the market up. This is reported by Reuters, writes UNN.
Details
On Friday, Brent crude oil prices rose by 0.2% to $66.12 per barrel, and WTI by 0.1% to $61.85. Both indicators added more than 5% on Thursday alone, after the announcement of sanctions, and by the end of the week rose by approximately 7% – the highest figure since mid-June.
The market is in wait-and-see mode – everyone is watching how big the impact of the new sanctions on Russian oil flows will be
Six-month Brent and WTI futures spreads have returned to backwardation, indicating a shift in trader sentiment – from fears of surplus to expectations of shortage. This allows oil to be sold at current, higher prices, instead of storing it for later sale.
Washington's new restrictions against Moscow, imposed in connection with the war in Ukraine, have once again destabilized the energy market, forcing investors and traders to revise their forecasts for the last quarter of the year.
Recall
The United States Department of the Treasury officially imposed sanctions against leading Russian oil companies "Rosneft", "Lukoil" and their subsidiaries. The US called on Moscow to "immediately" agree to end the war against Ukraine.
Vladimir Putin stated that the new US sanctions are serious, but will not affect the Russian economy. He called them an attempt to exert pressure and an unfriendly act that does not strengthen Russian-American relations.
Donald Trump reacted to these words. He ironically noted that he was glad to hear about the dictator's "confidence", but noted that he would prefer to see how Russia would cope with them.
UNN also reported that Hungarian Prime Minister Viktor Orbán is working on how to circumvent US sanctions against Russian oil companies "Lukoil" and "Rosneft".