Crude oil futures closed lower on Tuesday (Feb. 15) following news reports that Russia has withdrawn some of its troops stationed in border areas with Ukraine to its domestic bases. This has helped to de-escalate the situation somewhat.
- WTI crude futures fell $3.39, or 3.6%, at $92.07 a barrel.
- BRENT crude futures fell $3.2, or 3.3%, at $93.28 a barrel.
Earlier, oil prices had risen above $95, their highest level in more than seven years, as sanctions were threatened toward Russia in the event of an invasion. The sanctions are expected to include the exclusion of Russian banks from the SWIFT system, which in turn could take oil exports from Russia off the global market.
On Tuesday, Ukrainian government officials called for more diplomatic efforts to ease tensions between Ukraine and Russia.
Investors continue to monitor progress in talks on the Iranian nuclear agreement. A positive outcome in the talks could bring Iranian oil back to the world market and increase global supply.
In addition, investors are waiting for the release of crude oil inventory data by the U.S. government EIA, which will be announced today.
Analysts surveyed by S&P Global Platts expect U.S. crude oil inventories to decline by 200,000 barrels.
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Wednesday, February 16, 2022