Crude oil futures closed higher on Friday (Feb. 11) after the United States said Russia was on the verge of attacking Ukraine, which could lead to sanctions on Russian oil and gas exports. As a result, this could lead to a decrease in oil supply and an increase in price.
- WTI crude futures rose $3.22, or 3.6%, at $93.10 a barrel.
- BRENT crude futures rose $3.03, or 3.3%, at $94.44 a barrel.
Oil markets rallied as investors worried about tensions between Russia and Ukraine.
Analysts expected that oil prices could rise above $100 as tensions between Russia and Ukraine are heated up. In addition, mainstream news in the U.S. shows that an invasion is increasingly likely.
OPEC continues to have problems meeting agreed production targets. According to reports, OPEC is expected to fall short by almost 1 million barrels per day in February, which would be a huge setback. Especially the smaller OPEC countries have problems meeting their production quotas. Now the EIA has also urged OPEC to increase production capacity to counteract the market tightness after the U.S. government already made pressure.
At the moment, Saudi Arabia and the UAE are trying to compensate for the lack of capacity.
The Spot Market is Closed
Saturday, February 12, 2022