Crude oil futures rose on Tuesday as more potential sanctions and alleged war crimes by Russia adds to concerns of supply disruptions.
U.S West Texas Intermediate futures rose to around $104 a barrel while Brent edged high to around $109 a barrel.
Both benchmark contract climbed more than $2 a barrel after Japanese industry minister Koichi Hagiuda said the International Energy Agency (IEA) was still working out details for a planned second round of a coordinated oil releases.
Stalled Iran nuclear deal which could add more barrels to the market has also added to the rally of oil. Iran has blamed the United States for halting talks.
Meanwhile, India’s state rn Mangalore Refinery and Petrochemicals Ltd. purchased 1 million barrels of Russian Urals for May loading, in a rare move driven by the steep discount offered.
“Global crude oil trade will rebalance by ‘crude swapping’ between ‘self-sanctioning’ advanced economies and developing markets,” said Alex Sun, a managing consultancy for Wood Mackenzie, noting that a steep discount for Russian Urals barrels has created a buying opportunity for China to fill declining strategic reserves, as reported by Reuters.
