MELBOURNE : Oil prices rose on Wednesday as sanctions on Russian banks following Moscow's invasion of Ukraine hampered trade finance for crude shipments and some traders opted to avoid Russian supplies in an already tight market.
U.S. West Texas Intermediate crude futures were up $3.75, or 3.6per cent, to $107.16, after peaking at $107.55 in early trade, the highest since July 28, 2014."Issues around trade finance and insurance - that's all impacting exports from the Black Sea. The supply shocks are unfolding," he said.At the same time, while Western powers have not imposed sanctions on energy exports directly, U.S. traders at hubs in New York and the U.S. Gulf are shunning Russian crude.
A coordinated release of 60 million barrels of oil by International Energy Agency member countries agreed on Tuesday put a lid on market gains, but analysts said that would only provide temporary relief on the supply front.