After they had hardly changed in the morning, they increased significantly by midday. A barrel (159 liters) of North Sea Brent was last traded at 94.44 US dollars. That’s $1.16 more than the day before. The price of a barrel of the US West Texas Intermediate (WTI) variety rose by $1.09 to $93.16.
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Market observers spoke of a countermovement after significant losses from the previous day. Oil prices fell on Tuesday after Russia said it had begun withdrawing troops from the border with Ukraine. This was taken as a sign of relaxation on the markets. Meanwhile, NATO Secretary General Jens Stoltenberg has said that Russia is continuing its troop deployment in the border area with Ukraine, contrary to its own announcements.
According to the commodities expert Carsten Fritsch from Commerzbank, the most recent market reactions show how strongly oil prices are being driven by concerns about a military escalation in the Russia-Ukraine conflict and the associated delivery failures. Fritsch referred to the price for the next futures contract, which was significantly higher than the futures contract due in six months. “The market participants are therefore still willing to pay a considerable price premium for oil that can be delivered at short notice,” said the expert.
Oil prices were also supported by the latest data on the development of oil reserves in the USA. The previous evening it was announced that the interest group American Petroleum Institute (API) recorded a 2.4 million barrel decline in crude oil inventories last week. Falling oil reserves generally support oil prices. The official stock data from the US government are expected in the afternoon and should provide new impetus for the oil market.
SINGAPORE (dpa-AFX)
More news about the price of oil (Brent)
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