WTI broke above $100 per barrel again for the first time in 3 trading days
Concerns over a decline in Russian crude oil supply also contributed to the decline.
International oil prices likely to surge by $200 a barrel by the end of this year
[AFP = Yonhap News] International oil prices, which had been on a downward trend for three days, again broke through the $100 mark as the recent peace talks between Russia and Ukraine were sluggish. Analysts say that investors concerns about a vacuum in Russian oil also contributed to the rise in oil prices.
On the 17th, on the New York Mercantile Exchange, West Texas Intermediate crude for April delivery was traded at $102.98 per barrel, up $7.94 from the previous day. It is the first time in three trading days that the closing price has exceeded $100 per barrel. The price of May Brent crude on the London ICE Futures Exchange also surged by $8.62 to close at $106.64 per barrel.
International oil prices rose again as Russia, which had been negotiating with Ukraine for an end to the war, denied some media reports that there had been progress in the talks. A spokeswoman for the Russian Kremlin said media reports that some progress had been made in negotiations with Ukraine were not true and that talks would continue.
Earlier, as expectations for an end to the Ukraine crisis through the peace talks between the two countries increased, international oil prices showed a clear decline, dropping below the $100 level. On the 15th, the price of WTI was traded at $96.44 per barrel, down 6.4% from the battlefield. The WTI price fell below $100 a barrel for the first time since the 1st of this month. The price of Brent oil also continued to fall, trading at $99.91 a barrel, falling below $100 in three weeks.
However, international oil prices soared above the $100 mark again as the peace negotiations between Russia and Ukraine falter and investors fear a decline in the supply of Russian crude oil. The International Energy Agency analyzed on the 16th that the world economy could fall into a potential supply crisis as production of 3 million barrels of Russian crude oil and petroleum products a day from April will be halted. The IEA stressed in its report that the seriousness of the Russian crude oil gap should not be underestimated.
If the Ukraine crisis prolongs and no substitute for Russian oil is found, it is predicted that the international oil price could soar to $200 per barrel by the end of this year. Pierre Andurand, hedge fund manager, said that even if Russias invasion of Ukraine ceases now, Russian oil will not be readily available to the world market right away, and that oil prices are likely to continue to rise until demand for oil is sufficiently reduced.