Oil Soars 7.0 Percent, Ukraine Conflict Erases Iran Supply Hopes

Illustration/Photo: Antara

JAKARTA - Global crude oil prices jumped about seven percent in late trading Saturday March 5, in a volatile session as the disruption of Russian exports from Western sanctions drowned hopes for more Iranian supplies if Washington reached a nuclear deal with Tehran. Brent crude futures for May delivery soared 7.65 dollars, or 6.9 percent, to settle at 118.11 dollars per barrel. U.S. West Texas Intermediate (WTI) crude futures for April delivery rose 8.01 dollars, or 7.4 percent, to close at 115.68 dollars a barrel. That was the highest close for Brent since February 2013 and for WTI since September. 2008. During the week, Brent rose to intraday highs since May 2012 and WTI to intraday highs since September 2008. Oil prices rallied earlier in the session after Russian troops seized Europe's largest nuclear power plant. The fire at the training building was extinguished and officials said the facility was now safe.

The rally was extended after the Biden administration said it was exploring options to cut Russian oil imports and considering possible actions to minimize the impact on global supply and the impact on consumers. Crude futures have soared more than 20 percent since the United States and its allies imposed sanctions on Russia following sanctions against Russia. 24 February invasion of Ukraine.​​​​​Russian oil sales have been disrupted, with sellers finding it very difficult to strike a deal even as they offer heavy discounts on benchmark Brent crude.