WTI crude: Oil rose nearly 4% to trade above $103 a barrel on Monday as tight supply and the possibility of more sanctions on Russia more than offset a coordinated release of strategic reserves from consuming nations and a Covid-19 outbreak in China.
The EU is preparing to impose additional sanctions on Russia amid reports of civilians atrocities in Ukraine. Meanwhile, Saudi Aramco increased its Arab Light crude for next month’s shipments to Asia by $4.4 a barrel to a new record of $9.35.
Last week, oil prices slumped about 13% after President Biden announced a release of up to 1 million barrels of oil a day for six months, and other countries including IEA members pledged to do the same.
Elsewhere, the UN has brokered a 2-month truce between a Saudi-led coalition and the Houthi group for the first time in the 7-year conflict, which could normalize energy flows in the region.