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Oil price surges to 7-year high prompted by Russia’s invasion of Ukraine
By Arghyadeep Dutta - Mar 01, 2022, 05:42 PM ET
Last Updated - Jul 18, 2023, 05:38 PM EDT
- Morgan Stanley raised oil price forecast for Q2
2022
- U.S. average gas price jumped 24 cents per
Sponsored
gallon from a month ago
Oil prices jumped on Tuesday, with U.S. crude topping the highest
level since July 2014 amid the Russian military moving towards Ukraine’s
capital Kyiv.
West Texas Intermediate (WTI) crude futures, the U.S. oil
benchmark, jumped nearly 11% to trade at $106.20 per barrel.
Global benchmark Brent crude surged over 9.5% to trade at
$107.40 per barrel.
The crude
prices first hit the $100 mark last Thursday, following Russia invading
Ukraine, prompting fears of supply disruptions from key exporter Russia, which ranked
third in terms of oil production worldwide in what is already a very tight
market.
Oil price forecast
Morgan Stanley raised its near-term oil price forecasts on
Tuesday, with Brent averaging $110 in the April-June quarter, up from a prior
forecast of $100. Prices will jump to $125 per barrel under the firm’s bull
case.
The financial giant said the events in Ukraine have
introduced a risk premium that is likely to remain in the coming months, and
with the market tightness, “even small disruptions can have large price impacts.”
Americans are feeling the impacts of higher oil prices at
the pump, with the national average for a gallon of gas standing at $3.619 on
Tuesday, up 24 cents from a month ago.
ALSO READ: White
House pledges to avoid future sanctions on Russian crude oil
“Key European financiers to commodity trade houses have
already begun curbing financing for commodities trades, and Chinese banks are
also pulling back,” JPMorgan said in a note to clients.
“Current oil price differentials are reflecting a clear
unwillingness to take Russian crude.”
Picture Credit: MetalMinerMorgan Stanley raised oil price forecast for Q2 2022
U.S. average gas price jumped 24 cents per gallon from a month ago
- Morgan Stanley raised oil price forecast for Q2 2022
- U.S. average gas price jumped 24 cents per gallon from a month ago
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