In the early morning of February 20th, Beijing time, international crude oil prices closed higher on Wednesday, primarily due to market concerns about potential disruptions in oil supply from Russia and the United States. Oil prices remain near a one-week high as the market awaits further clarity on sanctions against Russia. Additionally, the U.S. is actively pushing for an agreement to resolve the Russia-Ukraine conflict, heightening market tension.
The price of West Texas Intermediate (WTI) crude oil for March delivery rose by $0.4, or 0.56%, settling at $72.25 per barrel on the New York Mercantile Exchange. Meanwhile, the price of Brent crude oil for April delivery on the Intercontinental Exchange in Europe increased by $0.2, or 0.26%, to settle at $76.04 per barrel. Both of these benchmark crude oil prices reached their highest closing prices since February 11th.
Aldo Spanjer, a commodity strategist at BNP Paribas, pointed out that the current market is trying to assess three major bullish drivers: Russia, Iran, and OPEC. Investors are closely monitoring the differences between announced and actual sanctions, particularly how they affect the stability of the global oil supply chain.
Additionally, the market is filled with uncertainty regarding the prospects of oil exports from Russia and Iran, as well as changes in OPEC's production policies, all of which are driving oil prices upwards. Markets are also awaiting further details on the Russian oil embargo and sanctions, especially regarding whether the U.S. and EU countries will further restrict Russia's energy exports.
Overall, the oil market continues to face significant uncertainty, with the risk of supply disruptions remaining a key factor driving oil price volatility.
