Oil prices rose on Monday as Western allies imposed more sanctions on Russia and Some Russian banks blocked from Swifta global payments system, could cause serious disruptions to oil exports.
At around 11:30 AM (Brazilian time), Brent crude rose 3.15% to $101.01 after breaking above $105 at the opening of the session. Last week, on the first day of the war between Russia and Ukraine, the price of Brent also exceeded $100 – For the first time since 2014.
Russia is facing severe disruptions in its exports of all commodities from oil to grain after Western countries imposed tough sanctions on Moscow and cut some Russian banks from the rapid international payments system.
“Russia can respond to these harsh measures by reducing or even suspending energy shipments to Europe entirely,” Fritsch said.
Russian crude accounts for about 10% of global supply. Goldman Sachs raised its one-month forecast for Brent price to $115 a barrel from $95 previously.
“We expect higher prices for commodities of which Russia is a major producer from here – and that includes oil,” the bank said.
at Negotiations between Ukraine and Russia Ukraine’s presidential aide said the Belarusian border was meant to agree to an immediate ceasefire.
“If there is any progress at this meeting, we will see a sharp reversal in the markets — we will see stocks rally, the dollar higher, oil lower,” said Jeffrey Haley, an analyst at OANDA.
British oil company BP BPL has decided to exit its Russian investments in oil and gas, opening a new front in the West’s campaign to isolate the Russian economy. BP is the largest foreign investor in Russia.
Analysts said that sanctions and the exodus of Western oil companies may affect Russian oil production in the short term.
The Organization of the Petroleum Exporting Countries and allies led by Russia, known as OPEC+, are due to meet on March 2. Prior to the meeting, OPEC + lowered its forecast for the oil market surplus in 2022 by about 200 thousand barrels per day to 1.1 million barrels per day, which confirms the scarcity of the market.
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