Crude oil futures closed more than 8% higher on Thursday (March 17) on forecasts of tightening global oil supplies following the imposition of sanctions on Russia by Western countries.
- WTI crude futures rose $7.94, or 8.35%, to close at $102.98 a barrel.
- BRENT crude futures were up $8.62, or 8.79%, at $106.64 a barrel.
Oil futures rose back above $100 after the IEA warned in a report of a shortage in oil markets. Sanctions against Russia are expected to prevent the export of 3 million barrels of crude oil and other oil products per day from April.
Morgan Stanley raised its forecast for Brent crude oil prices for the third quarter to $120 per barrel and expects Russian oil production to decline by 1 million barrels per day from April.
Crude oil contracts were also boosted by investor uncertainty about progress in peace talks between Russia and Ukraine. Kremlin spokesman Dmitry Peskov denied media reports that peace talks between Russia and Ukraine had made significant progress and that both sides were close to an agreement.
In addition, China is preparing stimulus measures and is expected to ease lockdown measures after the number of new Covid 19 infections declined.
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Friday, March 18, 2022