- In what is sure to be one of the wildest weeks on record for oil markets, Brent has traded in a record high range of $33 as uncertainty reigns.
- Oil prices soared past $130 earlier this week after Secretary of State Antony Blinken suggested the United States and its European allies were considering a ban on Russian oil.
- Oil prices then crashed $15 on Wednesday after the United Arab Emirates, a key OPEC member, suggested it would support an increase in oil production from the cartel.
Oil prices continued their frantic run this week, with Brent hovering high and low in the $33 a barrel range after ending the craziest week on record last week amid twists and turns in the international response to the Russian invasion of Ukraine.
Last week, Brent Crude traded a massive $20 a barrel range, as the Russian invasion of Ukraine raised supply concerns amid an exodus of Russian commodity buyers. It was the highest trading range on record for a week since the Brent benchmark was launched in 1988.
This week is on track to beat last week’s volatility after prices soared above $130 a barrel on Monday following comments from US Secretary of State Antony Blinken that the United States was in “very active” with allies over a ban on Russian oil imports. . Prices fell below $110 a barrel after German Chancellor Olaf Scholz said on Monday that Germany did not support an import ban because “there is no other way to guarantee Europe’s energy supply for heat generation, mobility, power supply and industry”.
Oil prices then jumped again on Tuesday after US President Biden announced a ban on imports of Russian energy without the participation of European allies.
On Wednesday, Brent crude fell 12%, or by $15 to $110 a barrel after the United Arab Emirates, one of OPEC’s most influential members, signaled that it favored production increases and “will encourage OPEC to consider higher production levels.” students “.
Early Thursday, oil rebounded, with Crude Brent rallying more than 4% to $116 a barrel and Crude WTI up 3% to $112, after UAE taken a step back on the basis of assurances, this would encourage other OPEC members to increase production above their agreed quotas to help contain runaway oil prices.
“Crude Oil (OILUKMAY22 & OILUSAPR22) is trading firmer after plunging 12% on Wednesday, with Brent already trading in a record $33 range so far this week,” Saxo Bank said in a statement. . Remark early Thursday.
By Tsvetana Paraskova for Oilprice.com
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