Oil prices hit 11-year highs on fears of rising supply and trade disruption
By Malvika Gurung
Investing.com — Crude oil managed to continue its upward move amid the worsening Russia-Ukraine crisis, hitting an 11-year high on Thursday.
Oil prices soared after new sanctions imposed by the United States on the Russian oil refining industry, enforcing export controls, fueling fears that Russian oil and gas exports are the next target, raising concerns about supply issues and trade disruption.
The intergovernmental organization OPEC and their allies, together with Russia, decided to increase production by 4 lakh barrels per day in March, even if oil prices reach record highs while completely ignoring the Ukraine crisis.
approached $118 a barrel on Thursday, hitting its highest level since August 2013. As of 9:50 a.m., it was trading up 3.25% at $116.6 a barrel.
The price climbed 3% to $113.85 a barrel at the time of writing, hitting a new 11-year high, as US crude stocks fell to multi-year lows.
On Tuesday, global oil markets jumped more than 10% after ceasefire talks between Russian and Ukrainian forces broke down, prompting traders to drive up crude prices amid fears that international sanctions against Moscow does not seriously undermine Russia’s energy exports.
Oil and gas prices have risen around 60% since November 2021, driven by fears of a Russian invasion of Ukraine.