Oil prices closed higher on Monday (Feb. 21) in the wake of the confrontation between Russia and the West over Ukraine. As a result, supply concerns kept oil prices near the $100 per barrel mark.
- Brent crude rose $2.74, or 2.91%, to $96.28 a barrel.
- WTI crude futures rose $2.79, or 3.06%, to $93.86 a barrel.
French President Emmanuel Macron said Monday that U.S. President Joe Biden and Russian President Vladimir Putin have agreed in principle to hold a summit on Ukraine. But the report said there is no urgent plan.
Russian President Vladimir Putin has announced he will sign a document recognizing two divided regions in eastern Ukraine as independent. Meanwhile, the EU warned that it would consider sanctions if the regions were recognized as independent.
The declaration of independence raises fears that it will further exacerbate the conflict, as this contravenes the Minsk Agreement.
Vivek Dhar, an analyst at Commonwealth Bank, said in a note that if Russia invades Ukraine, as the United States warned a few days ago, Brent futures could rise above $100 a barrel.
U.S. markets are closed on Monday for President’s Day.
Oil prices are also supported by OPEC, which continues to have difficulty meeting its production targets. This is leading to sensitive shortages around the world.
The only hope for an easing of oil prices is currently the Iranian nuclear agreement. With a deal, Iranian oil could return to the world market.
Iranian Foreign Ministry spokesman Saeed Khatibzadeh said yesterday there was progress in talks to restore Iran’s 2015 nuclear deal, and a senior EU official said Friday the agreement was “very close.”
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Tuesday, February 22, 2022