LONDON – Oil prices rose almost 7% on Thursday, extending a string of wild daily swings, as the market recovered from several days of losses due to heightened concern about supply constraints in the coming weeks as a result of Russian sanctions.
Oil benchmarks have been at their highest volatile since mid-2020 in recent weeks.
Prices resumed their upward trend after falling as purchasers cashed in on the run-up, owing to expectations that the energy market will soon be suffocated by shortages.
Benchmark By 1545 GMT, Brent crude futures had risen $8.23, or 8.4%, to $106.25 per barrel. WTI crude in the United States went up $7.42, or 7.8%, to $102.46 per barrel.
Following Russia’s invasion of Ukraine about three weeks ago, a number of countries have blocked the purchase of Russian oil. Russia is the world’s largest exporter of crude oil and petroleum products, and calls the operation a “special operation.” In the coming weeks, refiners and end-users must make swift adjustments.
Three million barrels per day (bpd) of Russian oil and products might be shut in starting next month, according to the International Energy Agency (IEA). According to the IEA, this loss would be significantly more than a 1 million bpd decline in demand due to rising fuel costs.