Crude oil futures closed higher Friday (March 4) as ongoing fighting between Russia and Ukraine heightened concerns about energy supply disruptions.
- WTI crude oil futures rose $8.01, or 7.4%, to $115.68 a barrel. This is the highest closing level since September 2008, and this week the contract price increased by 26.3%.
- BRENT crude oil futures rose $7.65, or 6.9%, to close at $118.11 per barrel. This is the highest closing level since February 2013 with the contract price rising 25.5% this week.
News about the Russia-Ukraine conflict continues to determine the market direction. In the wake of the ongoing fighting, Western countries have tightened their sanctions against Russia and more and more Western companies are withdrawing from Russia.
Meanwhile, OPEC+ announced on Wednesday (March 2) that they have agreed to keep the original agreement. They will increase oil production for the month of April by only 400,000 barrels per day, despite the possible shortage in the market due to the situation in Ukraine.
Meanwhile, policymakers criticized OPEC+’s decision not to increase production further. However, the IEA has announced plans to counter rising prices, calling on its member states to release strategic oil reserves. Accordingly, the U.S. plans to release up to 30 million barrels and Japan 7.5 million barrels.
The Spot Market is Closed
Saturday, March 5, 2022