London/New York: – The crude oil rates spurted above $95 per barrel due to the tensions prevailing between Russia and Ukraine. This is the first instance of the crude oil rates crossing $95 level since October 2014. Against the background of this rise, analysts have predicted that the crude oil rates could scale at $120 per barrel level.
The crude oil rates jumped by nearly 4% in London’s transactions and the United States on Friday. Brent crude jumped by 4.14% in London, recording $95.37 per barrel. The WTI variety of crude rates jumped by more than 5% in the United States, reaching $94.66 per barrel. This is the second spurt in crude oil rates this week.
Moreover, the International Energy Agency has published a report regarding crude oil. The report claimed that the demand for crude oil would reach up to $100 million barrels per day by the end of 2022. The claim prompted a jump of 2% in the crude oil rates. After that, the rates are seen to be rising once again.
It has been revealed that the statement of US National Security Advisor Jake Sullivan has been mainly responsible for the spurt in the crude oil rates. While predicting the possibility of the Russian attack on Ukraine, Sullivan said that the attack could be launched even before the end of the Winter Olympics in China. This statement indicates that the possibility of the conflict has increased further and analysts pointed out that this reaction from the markets resulted in a spurt in the crude oil rates.
The crude oil rates increased by 50% in 2021. Whereas the crude oil rates have increased by 30% in the first 40 days of 2022. Against this background, analyst Pavel Molchanov has predicted that the crude oil rates will reach $120 per barrel over the next few days. Molchanov warned, ‘In the international markets, Russia has a 10% share in the total crude oil supplies globally and the United States and Saudi Arabia. Out of this, 50% of the oil is supplied to Europe. This supply is under threat if a conflict is sparked between Russia and Ukraine. It could result in the crude oil rates reaching the level of $120 per barrel and countries like India, Germany and France could be hit by this.’
Meanwhile, analyst Troy Vincent claimed that the crude oil rates could rise by 10% to 15% during the actual conflict.
Related posts:
Russia races ahead to become the world’s largest fuel exporter, leaves Saudi Arabia behind
Russian President Putin on important state visit to China
Oil prices rise with indications of Russia-Saudi Arabia talks
More than 150 countries hit by massive cyber attack; Experts warn of increased possibility of new cyber attack
China will have to pay the price if it supports Russian attack on Ukraine, warns US NSA Jake Sullivan
UN Security Council to hold discussions over US Biolabs in Ukraine
Saudi begins to move away from Petrodollar to Petroyuan
Russian space institute chief questions US whether it is using ISS weighing 500 tonnes against India and China
