Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Oil breaks $90/bbl for the first time since 2014 on Russia tensions

CommoditiesJan 26, 2022 03:31PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Crude oil storage tanks are seen from above at the Cushing oil hub, in Cushing, Oklahoma, March 24, 2016. Picture taken March 24, 2016. REUTERS/Nick Oxford//File Photo

By David Gaffen

NEW YORK (Reuters) - Oil rose on Wednesday, tuoching $90 a barrel for the first time in seven years, supported as tight supply and rising political tensions between Russia and Ukraine added to concerns about further disruption in an already-tight market.

Brent crude gained $1.76, or 2%, to settle at $89.96 a barrel, after surpassing $90 for the first time since October 2014. U.S. West Texas Intermediate (WTI) crude closed up $1.75, or 2%, to $87.35 a barrel.

Oil prices edged off their gains in post-settlement trading, retreating with other risk assets like equities after investors interpreted U.S. Federal Reserve Chairman Jerome Powell's comments in a press conference on expected interest rate hikes as somewhat hawkish.

Russia has amassed thousands of troops on Ukraine's border, fanning fears of an invasion. Energy market prices rose on worries that Russia's gas supply to Europe could be interrupted. Russia is also one of the world's largest oil exporters.

U.S. Secretary of State Tony Blinken said the United States will make sure global energy supplies are not interrupted if Russia takes action.

"Markets are nervous that physical supply could be disrupted," said Paul Sheldon, chief geopolitical advisor, analytics, at S&P Global (NYSE:SPGI) Platts. "Most likely, flows will continue, but the risks are not negligible that something could affect physical balances."

On Tuesday, U.S. President Joe Biden said he would consider personal sanctions on President Vladimir Putin if Russia invades Ukraine. Separately, Yemen's Houthi movement launched a missile attack on a United Arab Emirates base on Monday.

Global political tensions have added to worries about an already tight energy market. OPEC+ is having trouble meeting monthly production targets as it restores supply to markets after drastic cuts in 2020, and the United States is more than a million barrels short of its record level of daily output.

"The only organization that can change the course of prices now is OPEC," said Claudio Galimberti, senior vice president of analysis at Rystad.

Meanwhile, demand remains strong, suggesting inventories may decline further. The Organization of the Petroleum Exporting Countries and allies (OPEC+) meets on Feb. 2 to consider another output increase.

Inventories in the United States rose in the latest week, with crude stocks up by 2.4 million barrels, against expectations for a modest decline. Gasoline inventories rose to their highest in almost a year - a needed salve for the market. [EIA/S]

U.S. refined product supplied - a measure of demand - surged again, putting the four-week moving average at 21.2 million barrels per day, ahead of pre-pandemic trends. The increases have been led by consumption of distillates like diesel, as gasoline use has been weaker in recent weeks.

Oil breaks $90/bbl for the first time since 2014 on Russia tensions
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (10)
HotGaz Elviz
HotGaZ Jan 26, 2022 10:33AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Nordstream 2 political theater.  Russia has billions *****in development cost but making bank on high prices with Nord 1.
Wilks Campbell
Wilks Campbell Jan 26, 2022 3:08AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Biden need this to distract attention to his policy failure, need it to keep inflation high to let Fed combat inflation, which is the top priority for mid term election, the icing sugar of course is all oil companies can earn bit more money , and who else ? you guess !
Junk Man
Junk_Man Jan 26, 2022 3:08AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Totally, you don't hear about China/Taiwan, very little coverage on covid, no coverage on how to fix our own country... Seems there are no problems outside of Russia...
Wilks Campbell
Wilks Campbell Jan 26, 2022 3:04AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I bet the actual invasion will not happen!
Wilks Campbell
Wilks Campbell Jan 26, 2022 3:03AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Who else can earn big from it. Ask those investigative journalism practitioners, if there is still ones who can speak out !
Wilks Campbell
Wilks Campbell Jan 26, 2022 3:02AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Who else can earn big from it. Ask those investigative journalism practitioners, if there is still can speak out !
Wilks Campbell
Wilks Campbell Jan 26, 2022 3:01AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
the longer Putin hold the tension, more money can be earned from his energy exports. Hold as long as it can , from Putin perspective.
Zayed dughaish
Zayed dughaish Jan 26, 2022 12:51AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
i got my job
Marcus Bennett
Marcus Bennett Jan 25, 2022 10:53PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Mr. B is ahead of his time
Marcus Bennett
Marcus Bennett Jan 25, 2022 10:52PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Buffett said in his letter that Berkshire Hathaway Energy is in the middle of an $18 billion project, begun in 2006 and continuing until 2030, to rework and expand the electricity grid in the
Marcus Bennett
Marcus Bennett Jan 25, 2022 10:52PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
oil companies please we need you to comply with nature and invest into #Solarenergy #Berkshire #SuncorEnergy
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email