Rumors of a full-scale Russian invasion of Ukraine have affected prices.
Brent oil prices for the first time since 2014 exceeded $90 per barrel. Part of the reason for this is the threat of a full-scale Russian invasion of Ukraine, reports the Chronicle.info with reference to Channel 24.
The price of oil is growing $90.07 per barrel, which has not happened since October 2014. Since the beginning of the year, the price of oil has already increased by 14%, and by 50% in 2021 On Wednesday, On Jan. 26, Brent closed at $89.96 a barrel, up $1.76 or 2% from the day before.
- WTI up $1.75, or 2%, to $87.35 a barrel. In 2021, WTI also increased by 50% in price, and since the beginning of this year — already by 16%.
Why oil is rising in price
The rise in oil prices occurred against the backdrop of news that Russia may attack Ukraine. This week, American troops were put on «high alert» for a possible deployment in Eastern Europe, while NATO sent additional ships and fighter jets to the region in anticipation of an escalation of the Russian-Ukrainian conflict.
The oil narrative is now predominantly skewed in a positive direction, fueled by geopolitical tensions and the impression that the market is in trouble with oil volumes — something that will be proven only in a few months,
— said John Kilduff, partner at New York-based energy hedge fund Again Capital.
OPEC+ members, which includes Russia, have also produced less oil over the past month, reinforcing the theory that the market is not enough Oil.
At the same time, U.S. gasoline inventory gains slowed as refiners processed less crude into products amid lower fuel demand. Inventories rose by 1.3 million in a week barrels against 2.5 million, which was expected.