Oil is ready for the biggest weekly drop After the break in the burning rally since the Russian invasion from November Ukraine And wild swings in prices.
Futures in New York climbed above $107 a barrel on Friday, but are still down more than 7% for the week after market stirred by news of a US sanctions on Russia. oil imports And what were the first signs of a split in OPEC+. In two of this week’s four trading sessions, Brent crude is the highest on record – with intraday swings at $20 a barrel.
The fallout of the invasion has spread to commodity markets ranging from wheat to major fuels such as gasoline and diesel, adding to inflationary pressures around the world. Rystad Energy has predicted that Brent could rise to $240 a barrel this summer if countries continue to approve Russian oil imports.
Mounting sanctions on Russia for its war in Ukraine have prompted fears that an already tight market could be exacerbated, though OPEC and Chevron Corp insisted this week that there was no shortage of barrels. Banks such as Goldman Sachs Group Inc say that only demand destruction can stop a price rally.
Open interest in major oil contracts has dropped to a six-year low in recent days as traders turn risk-averse. Volatility has increased, and exchanges are pushing up margins, effectively increasing the cost of buying and selling.
Brent remains deep in an increasingly backward structure, where near-dated contracts are more expensive than later ones, reflecting concerns about tight supplies. The global benchmark’s quick spread was at $3.90 a barrel on Thursday, compared to $1.39 at the start of last month.
This story has been published without modification in text from a wire agency feed. Only the title has been changed.
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