Oil prices surge nearly 10% on Tuesday as sanctions on Russia hurt global supply
WTI oil skyrocketed nearly 10% on Tuesday and holding comfortably above $100 per barrel, on growing fears about stronger disruption of global supply after the tough sanctions on Russia started to bite, as importers in Europe and Asia reject Russian ships with oil.
Panic in the market, caused a record daily rise of oil prices, with officials trying to cool overheated oil market by decision by ministers of International Energy Agency to release 60 million barrels from oil reserves.
Market analysts remain skeptic as disruption from Russia, one of the world’s oil producers which exports around 4-5 million barrels of crude oil per day, could further inflate oil prices.
June 2014 high at 107.45 marks next target, followed by psychological $110 level, which could be easily reached if panic in the oil markets persists, as immediate release of oil from reserves, likely to be insufficient to significantly lower oil prices.
In such scenario, the oil price could surge towards May 2011 peak at 114.80.
Crude oil extends its steep ascend after advancing for three consecutive months, with fundamentals, particularly the situation developing over the war in Ukraine, seen as key driver of oil prices in coming days.
Res: 104.95; 107.45; 109.30; 110.00
Sup: 102.50; 101.00; 100.49; 100.00