BEIJING: Oil prices soared nearly $2 per barrel in early trade on Friday as Russia’s invasion of Ukraine continued to inflame global supply concerns as markets brace for the impact of trade sanctions on major crude exporter Russia.
Global benchmark Brent crude rose $1.99, or 2%, to $101.07 a barrel on Friday. US West Texas Intermediate (WTI) crude CLc1 climbed $1.89, or 2% to $94.70 a barrel. The attack on Ukraine caused prices to surge to more than $100 a barrel for the first time since 2014 on Thursday, with Brent touching $105, before paring gains by the close of trade.
The Russian assault by land, sea and air was the biggest attack on a European state since World War Two, prompting tens of thousands of people to flee their homes. President Joe Biden hit Russia with a wave of sanctions on Thursday after Moscow invaded Ukraine, measures that impede Russia’s ability to do business in major currencies along with sanctions against banks and state-owned enterprises.
READ MORE: Oil surges above $100 for first time since 2014
The White House has warned Americans that the conflict could lead to higher fuel prices in the United States, though it is taking measures to help soften that blow. Biden warned oil and gas companies not to “exploit” this moment to raise prices.
Nigeria’s petroleum minister has also said that there is no need for OPEC+ to expand planned oil production as a potential deal between Iran and world powers will increase supplies.
The US and Iran have been engaged in indirect nuclear talks in Vienna, in which a deal could lead to the removal of sanctions on Iranian oil sales and increase global supply. Iranian officials said on Twitter that Western partners in the nuclear talks have to make decisions on crucial issues to help reach an agreement.
