© Archyde.com. Oil rigs in the city of Kogalym in Siberia, Russia, with a photo from Archyde.com archive.
LONDON (Archyde.com) – It rose on Tuesday, rising above $127 a barrel, as the prospect of official US sanctions on Russian oil exports raised supply concerns.
Brent crude futures, the benchmark for May delivery, rose 3.56, or 2.9 percent, to $126.77 a barrel by 1103 GMT.
US West Texas Intermediate crude futures for April delivery also rose $3.12, or 2.6 percent, to $122.52 a barrel.
Prices rose following sources told Archyde.com that the United States, the world’s largest oil consumer, may ban Russian oil imports in the wake of Russia’s invasion of Ukraine, which began on Feb. 24. The sources said that the United States is ready to take this step without the participation of European allies.
British oil giant Shell said on Tuesday it intends to withdraw from the Russian oil and gas sector and stop all spot purchases of Russian crude oil, a first step for now.
Russian Deputy Prime Minister Alexander Novak said on Monday that oil prices might exceed $300 a barrel if the United States and the European Union banned oil imports from Russia.
Fears of a possible Russian response to sanctions already in place by halting energy exports have also pushed up prices.
Goldman Sachs (NYSE:) raised its forecast for the price of Brent crude for 2022 to $ 135 a barrel from $ 98, and its forecast for 2023 to $ 115 a barrel from $105, given that the global economy may face “the largest shocks to energy supplies ever,” given To the main role of Russia.
One of the reasons for the price hike was the apparent slowdown in talks with Iran over its nuclear program, which would end sanctions imposed on its oil sales. The EU envoy to the talks said it was up to Iran and the United States to make political decisions to reach an agreement.
Moreover, it may take months for Iranian oil to flow following the nuclear deal.
Swiss bank UBS said on Tuesday that even if Iran eased its current tight oil supply using floating storage, “a decrease in free spare capacity and strategic oil reserves is likely to keep energy investors uneasy and prices at elevated levels.” “.
(Prepared by Muhammad Farag for the Arabic Bulletin – Editing by Duaa Muhammad)
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