Oil prices rebounded on Friday as the disruption of Russian oil exports because of western sanctions outweighed the prospect of more Iranian supplies from a possible nuclear deal. Brent crude futures for May rose to as much as $114.23 a barrel and were at $113.72, up $3.26, or 3% by 0121 GMT.
The contract fell 2.2% on Thursday. U.S. West Texas Intermediate for April rose $4.15, or 3.9%, to $111.82 a barrel after touching a high of $112.84 earlier in the session.
The contract fell 2.6% in the previous session. Global markets sank while oil prices rose on signs of an escalation in the Russia-Ukraine conflict after reports that a Ukrainian nuclear power plant, Europe’s largest, was on fire after an attack by Russian troops.
Oil is rising on fears that Western sanctions on Russia over the Ukraine conflict will disrupt shipments from Russia, which is the world’s biggest exporter of crude and oil products combined.
Trading activity for Russian crude oil already appears frozen as buyers are hesitant in making purchases because of the sanctions. “Price gains linked to actual and perceived disruptions to Russian oil exports should more than offset any fall in prices from potentially more Iranian crude oil supply,” Commonwealth Bank of Australia analyst Vivek Dhar said.
