KUALA LUMPUR – Crude oil benchmarks jumped earlier today on the back of a supply crunch, potential trade disruption and shipping issues as a result of new sanctions imposed against Russia after the country invaded Ukraine over a week ago.
As of 2.07pm, Brent crude futures continued its relentless rally, surging by 3.62% to US$117 (RM490) per barrel, while West Texas Intermediate advanced 3.44% to US$114.40 per barrel.
Earlier, Brent crude futures rose as high as US$118.22 a barrel, the highest since February 2013.
The market was reacting to the United States’ latest round of sanctions on Russia’s refining sector, leading to concerns that the export curbs could move to Russia’s oil and gas sector.
With the unfolding of Russia’s invasion of Ukraine, Brent crude prices have jumped to over US$100 per barrel in light of supply disruption fears.
Russia contributes about 10% of global oil supply.
Russia is the world’s number three oil producer, and the largest exporter of oil to global markets, according to the International Energy Agency, CNBC reported.
Russian crude and oil products exports reached 7.8 million barrels per day in December, the agency said.
Yesterday, the Petroleum Exporting Countries Organisation and its allies, including Russia, decided to maintain an increase in output by 400,000 barrels per day in March. – Bernama, March 3, 2022
