A rally that has driven oil prices to their highest in almost a decade shows no signs of abating, as supplies from top exporter Russia are disrupted by sanctions after its invasion of Ukraine, a Reuters poll showed on Friday.
"The risk premium is going through the roof," said Christian Reuter, NORD Landbk's senior director of sector strategy, with the Organization of the Petroleum Exporting Countries and allies also unable to adequately compensate the shortfall. "Prices could spike to $150 a barrel and even higher if the U.S. and allies take even more aggressive steps to reduce oil exports from Russia, as there is not sufficient spare capacity to offset a significant reduction in Russian exports," said John Paisie, president of Stratas Advisors.