London, Wednesday, 09 March 2022
WTI crude futures tumbled more than 5% to below $117 a barrel in choppy trade on Wednesday, after climbing more than 2% earlier in the session, as investors assess the impact of recent oil market sanctions.
Fears of further supply disruptions and escalating sanctions, exacerbated by uncertainties about the possible return of Iranian crude to global markets, have driven up US oil prices by about 30% since Russia's invasion of Ukraine, reaching a high of over $130 this week, the highest since 2008, amid fears of further supply disruptions and escalating sanctions.
The United States has placed an immediate ban on Russian oil and other energy imports, while the United Kingdom has stated that it will phase out Russian oil imports by the end of 2022.
Furthermore, private oil corporations such as BP and Shell announced that they would take a step back from doing business with Russia, with Shell immediately suspending its purchases of Russian crude and closing its service stations in the country.
(Written and edited by: The Decision Maker)