Oil rises as Russian crude export disruptions deepen
The Russian invasion of Ukraine is raising the risk premium and keeping crude prices high
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Oil was trading higher in early Asian trading on Tuesday, April 5, 2022, as Russian crude export disruptions deepen, which would likely tighten the oil-market balance and place more persistent upward price pressures, Fitch Solutions reported.
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The ongoing Russian invasion of Ukraine is also raising the risk premium and keeping crude prices high, Fitch added.
The oil market is already very tight as indicated by the futures curve, which is pricing in a lower cost of crude in coming months compared with spot prices, Fitch said.
Oil was trading higher in early Asian trading Tuesday, April 5, 2022, as Russian crude export disruptions deepen, which would likely tighten the oil-market balance and place more persistent upward price pressures, Fitch Solutions reported. (istock)
May Brent prices gained 1.5% to $109.18 per barrel and WTI rose 1.6% to $104.89 per barrel, the report said.
Oil prices jumped over 3% Monday, with investors worried about tighter supply as mounting civilian deaths in Ukraine increased pressure on European countries to impose sanctions on Russia's energy sector.
Global benchmark Brent crude jumped $3.14, or 3%, to settle at $107.53 a barrel.
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Trading was volatile with both contracts rising after being down more than $1.
- Reuters contributed to this report.