Crude sees wildest week with global markets rocked by war

Bloomberg

Oil climbed, ending a week in which it swung by more than $20 a barrel after Russia’s invasion of Ukraine roiled global markets and fueled fears of a supply crunch.
Futures in New York and London were up about 3% on Friday. Brent, the global benchmark, has traded in the biggest range since the launch of the futures contract in 1988 — eclipsing the wild swings in the global financial crisis of 2008 and when demand plunged in the coronavirus pandemic. Brent was near $114 a barrel while West Texas Intermediate traded around $112 and diesel markets surged with Russian supply curbed.
On Friday, Prices climbed after Ukrainian officials said Russian forces attacked a nuclear plant — Europe’s biggest. While the likelihood of a major disruption to Russian supply has boosted prices, signs that an Iranian nuclear deal may be near have added to price volatility.
The International Energy Agency warned that global energy security was under threat, and a planned release of emergency oil reserves by the US and other major economies failed to quell supply concerns. JPMorgan Chase & Co said global benchmark Brent crude could end the year at $185 a barrel if Russian supply continues to be disrupted, and some hedge funds are eyeing $200.
The invasion has reverberated throughout the energy sector. Global oil majors such as BP, Shell and Exxon Mobil are exiting Russia, buyers of its crude are seeking alternatives and shipping costs are spiking. Russia’s Lukoil PJSC called for a “fast resolution of the military conflict.”
While official sanctions haven’t been imposed on Russian energy exports, buyers are shunning the nation’s crude as they navigate financial penalties. Germany and the White House oppose a ban on Russian oil imports, though US lawmaker support to prohibit shipments into America is growing. “Russia’s invasion of Ukraine means that fears over supply will remain front and centre,” said Stephen Brennock, an analyst at PVM Oil Associates in London.
West Texas Intermediate for April delivery gained 3.8% to $111.78 a barrel in New York. Brent for May settlement rose 3.3% to $114.10.