Crude Prices Extended Over $105 as War Halt Negotiations Sees No Progress

Oil futures climbs in Asian after biggest daily surge prices back above $100 a barrel amid doubt on peace talks between Ukraine and Russia.

Futures of U.S WTI rose near $105 a barrel while Brent neared $109 a barrel.

Crude prices rallied after Russia said major progress in negotiations talk over Ukraine was “wrong”. However, Moscow expressed interest in continuing discussion.

The market for oil has been largely dominated by developments related to war and COVID-19 restrictions in China in recent days. Liquidity crunch is adding more volatility to the prices of oil. Traders are cautious about purchase about Russian crude, worried about reputation damage or failing foul of sanctions.

“It seems to me that the market is just panicking and chasing its tail,” said Jeffrey Halley, a senior market analyst for Oanda Asia Pacific Pte, as reported by Bloomberg.

“We are going to get more intraday volatility. Oil is going to sit between $100-$120 a barrel, that’s going to be the rough range over the next month.”

Saudi Arabia’s Crown Prince Mohammed bin Salman told the Japanese Prime Minister a day later that the kingdom is keen to maintain the oil market’s balance and stability, state-run SPA reported.

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