Oil prices are also rising due to supply-side concerns
An impasse between European nations and Russia is causing investor fears over the supply of the raw material.
Oil prices are rising slightly this Thursday, up almost a dollar a barrel, after a drop in the previous session due to the standoff between European nations and Russia, which is causing investors’ fears over the supply of the raw material.
At 7:35 a.m. this Thursday, a barrel of Brent, quoted in London and serving as a benchmark for domestic imports, was up 0.25% to $88.22, while WTI, quoted in New York, was advancing 0.41% to $82.28.
This performance comes after the Russian President threatened to halt oil and natural gas exports from Russia if maximum prices were imposed by European buyers. Hours after this threat, the European Union proposed imposing price caps on natural gas purchased from Moscow, raising fears among investors that Putin would carry out his threat.
Russia’s state oil company, Gazprom, has already disrupted flows on the Nord Stream 1 pipeline, cutting off a substantial percentage of supplies to Europe. On that day, natural gas prices skyrocketed by 25%.
The trend in oil prices is being shaped by “several external forces, such as the energy battle between Western countries and Russia,” Haitong Futures analysts said in a note quoted by Reuters. But the impact of a deal between the West and Iran on Tehran’s nuclear program would also be significant, they noted. That would cause sanctions on Iranian oil exports to be suspended.