BRENT Continues to Hover Near $100 as Concerns Grow Over Sanctions Impacts

Crude oil futures closed higher on Tuesday (Feb. 22), supported by tensions in Ukraine. Also, the prediction is that the sanctions imposed on Russia by the U.S. and the West will affect oil exports from Russia.

  • WTI crude futures were up $1.28, or 1.4%, at $92.35 a barrel.
  • BRENT crude futures were up $1.45, or 1.5%, at $96.84 a barrel.

Investors are concerned that U.S. and Western sanctions against Russia in the wake of the Ukraine conflict will impact oil exports from Russia.

British Prime Minister Boris Johnson declared economic sanctions against Russia after Russian President Vladimir Putin recognized the independence of the Donetsk and Luhansk regions. Furthermore, Russia sent troops to the two regions.

Johnson announced sanctions against five Russian banks in retaliation for Russia’s military action, and also sanctions against three Russian billionaires.

On the other hand, U.S. President Joe Biden has imposed sanctions on VEB, Russia’s largest bank, and PSB Bank the bank of the Russian military. The sanctions would prevent both banks from conducting dollar-denominated transactions.

In addition, in response to Russia’s recognition of the independence of the two regions, German Chancellor Olaf Scholz announced yesterday that it would stop approval for the Nord Stream 2 natural gas pipeline.

Meanwhile, investors are looking ahead to the weekly report on U.S. crude oil inventories, which the EIA will publish on Thursday.

The Spot Market is Open

Tuesday, February 23, 2022

Energy
Updated at
USD
Price

Change

%Change
Crude Oil
13.35

91.72

-0.19

-0.21%

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