Oil breaks above $90/barrel for first time since '14 amid rising geopolitical tension
by SOURAV D | VIEW 1130
Despite assurances from an incumbent Biden Administration that global energy supply will not be disrupted in case of a rapid spike in geopolitical tensions, both US and UK crude oil futures jumped as much as 2 per cent on Wednesday, extending their latest leg of blistering rally, while Brent crude touches a $90 per barrel level for the first time since 2014 as mounting geopolitical tensions added to further strains on an already squeezed supply line. In factuality, in the day’s steep gain in crude oil futures’ prices was almost entirely galvanized by an acceleration in tension over Ukraine issue with the US President Biden reportedly threatening a sanction on President Putin in lieu of deescalating angsts, provoking the severity of an incident that could have grievous geopolitical impact.
Crude oil prices climb above $90 per barrel
Citing statsitics, in the day’s commodity market wind-down, UK crude oil futures’ prices added 2 per cent to $89.96 after topping a $90-level for the first time since October 2014, while US WTI (West Texas Intermediate) contracts edged 2.0 per cent higher to $87.35 a barrel.
Meanwhile, addressing to a growing market fret over a plausible disruption in physical supplies, a chief geopolitical advisor at S&P Global Platts, Paul Sheldon said, “Markets are nervous that physical supply could be disrupted.
Most likely, flows will continue, but the risks are not negligible that something could affect physical balances. ”