Crude oil prices inched up on Tuesday after a volatile week start as traders priced in coordinated release of oil by U.S. and its allies.
Brent is trading at $98.68 per barrel with benchmark touched seven year high of $105.79 par barrel in the wake of Russia’s invasion of Ukraine earlier last week. Meanwhile, U.S. WTI is trading at $96.43 per barrel and the contract touched $99.10 a barrel on Monday.
Supply concerns are still elevated as major oil and gas companies inching BP and Steel announced its plan to exit Russian operations and joint ventures. Buyer of Russian oil and gas are also facing difficulties over payment and vessel availability after the West put sanctions against Russia over dispute in Ukraine.
The market calmed as the United States and allies discuss a coordinated release of crude stocks in a bid to mitigate supply disruption. That release could tally up to between 60 and 70 million barrels, media outlets reported.
The International Energy Agency (IEA) is set to hold an extraordinary ministerial meeting on Tuesday to discuss what role its members can play in stabilising oil markets.
