The war premium is back in the oil market, pushing prices higher after the Biden administration reportedly gave Ukraine the green light to use U.S.-manufactured long-range missiles to strike Russian territory. Reuters reported the news on Sunday citing unnamed sources from the Biden administration, with the sources also saying that the government in Kiyv planned to take advantage of the decision in the next few days.
33 per barrel and West Texas Intermediate at $67.20 per barrel. The benchmarks may well have further up to go if the Ukrainian government does go through with the long-range attacks on Russian territory as this would inevitably prompt retaliation. On the other hand, “Market participants continue to fret over the prospects for higher supplies from the US and OPEC”, Yeap Jun Rong, market strategist with IG Asia, told Bloomberg. “There’s not much of a bullish catalyst for oil prices to ride on.