Oil slides from decade-highs as Iran talks kindle supply hopes | Reuters
Oil slid 2% on Thursday, after hitting prices not seen in roughly a decade, as sellers jumped on hopes the United States and Iran will agree soon on a nuclear deal that could add barrels to a tight global market.
Trade was volatile, with crude prices jumping early to multi-year highs on worries about Russia, which exports 4 to 5 million barrels per day (bpd) of crude, second-most worldwide behind Saudi Arabia. Following Russia's invasion of Ukraine, companies are now shunning Russian supply and scrambling for barrels elsewhere.
Oil markets are in an "explosive mood” over increasing outrage against Russia said Phil Flynn, an analyst at Price Futures Group. “People in the world don't want to deal with a country that is committing these atrocities in Ukraine.”
Brent futures were down $2.47, or 2.2%, to $110.46 a barrel, while U.S. West Texas Intermediate (WTI) crude fell $2.93, or 2.6%, to $107.67.
Both benchmarks rose to multi-year highs during the session, with Brent soaring to $119.84, its highest since May 2012 and WTI hitting its highest since September 2008 at $116.57.
Thursday, 3 March 2022
Insider: Sequoia, Qatari Wealth Fund Back Turkish Tech’s Latest Unicorn - Bloomberg
Insider: Sequoia, Qatari Wealth Fund Back Turkish Tech’s Latest Unicorn - Bloomberg
Qatar’s sovereign wealth fund led a funding round for Insider PTE, valuing the Turkish artificial intelligence startup at $1.22 billion as global funds channel more cash into Turkey’s up-and-coming technology firms.
Insider Pte Ltd got $121 million in financing from Qatar Investment Authority in the Series D round, as well as from Sequoia Capital Operations LLC, Riverwood Capital LLC, Wamda Capital, Endeavor Catalyst Inc., Esas Holding AS and 212 Capital Partners, according to an emailed statement from the company.
Insider’s valuation, at triple the level two years ago, underlines the growing foreign interest in Turkish startups, mostly in technology. Those companies attracted $1.55 billion last year, a 10-fold increase from a year ago and 50 times higher than 2016. Previous Turkish unicorns, a term that describes startups worth $1 billion or more, were mostly in retail or gaming.
Insider’s platform uses artificial intelligence to predict future consumption behavior. It counts the likes of Toyota Motor Corp. and Vodafone Group Plc among its clients.
The new funding will be used to expand into the U.S. after recent growth in Asia, Europe and Latin America, according to Hande Cilingir, its chief executive and co-founder.
Qatar’s sovereign wealth fund led a funding round for Insider PTE, valuing the Turkish artificial intelligence startup at $1.22 billion as global funds channel more cash into Turkey’s up-and-coming technology firms.
Insider Pte Ltd got $121 million in financing from Qatar Investment Authority in the Series D round, as well as from Sequoia Capital Operations LLC, Riverwood Capital LLC, Wamda Capital, Endeavor Catalyst Inc., Esas Holding AS and 212 Capital Partners, according to an emailed statement from the company.
Insider’s valuation, at triple the level two years ago, underlines the growing foreign interest in Turkish startups, mostly in technology. Those companies attracted $1.55 billion last year, a 10-fold increase from a year ago and 50 times higher than 2016. Previous Turkish unicorns, a term that describes startups worth $1 billion or more, were mostly in retail or gaming.
Insider’s platform uses artificial intelligence to predict future consumption behavior. It counts the likes of Toyota Motor Corp. and Vodafone Group Plc among its clients.
The new funding will be used to expand into the U.S. after recent growth in Asia, Europe and Latin America, according to Hande Cilingir, its chief executive and co-founder.
OPEC+ Silence on Russia War Deepens Rift With Consuming Nations - Bloomberg
OPEC+ Silence on Russia War Deepens Rift With Consuming Nations - Bloomberg
As the OPEC+ coalition tries to ignore an oil shock unleashed by one of its leading members, relations with consumers are deteriorating.
The 23-nation group led by Saudi Arabia faced a yawning gap in supplies when it gathered on Wednesday, as the market shuns supplies from member nation Russia. The International Energy Agency had already tried to calm the rally by deploying emergency stockpiles, to little avail. Yet Riyadh and its partners offered nothing new to slow oil’s surge toward $120 a barrel, wrapping up their meeting in just 13 minutes.
On Thursday, the head of the IEA -- which represents the U.S. and other major economies -- offered a terse and unusually critical response.
“In a word, it was disappointing,” IEA Executive Director Fatih Birol said in a call with reporters. “I think we’ll leave it at that.”
The cordial rapport established between the Organization of Petroleum Exporting Countries, its allies and Western governments during the pandemic, when the group rescued the global oil industry by slashing production, was already fraying.
Last summer, Saudi Energy Minister Prince Abdulaziz bin Salman dismissed the agency’s recommendation to meet climate goals by curbing hydrocarbon investments as a fantasy akin to the Hollywood musical, “La La Land.” In turn, the IEA’s Birol criticized OPEC+ members in April for causing “artificial tightness” in oil markets by holding supplies back.
With the group apparently willing to let prices flare and the international community set on bringing them under control, it’s hard to see the producing and consuming blocks getting back on the same page soon.
As the OPEC+ coalition tries to ignore an oil shock unleashed by one of its leading members, relations with consumers are deteriorating.
The 23-nation group led by Saudi Arabia faced a yawning gap in supplies when it gathered on Wednesday, as the market shuns supplies from member nation Russia. The International Energy Agency had already tried to calm the rally by deploying emergency stockpiles, to little avail. Yet Riyadh and its partners offered nothing new to slow oil’s surge toward $120 a barrel, wrapping up their meeting in just 13 minutes.
On Thursday, the head of the IEA -- which represents the U.S. and other major economies -- offered a terse and unusually critical response.
“In a word, it was disappointing,” IEA Executive Director Fatih Birol said in a call with reporters. “I think we’ll leave it at that.”
The cordial rapport established between the Organization of Petroleum Exporting Countries, its allies and Western governments during the pandemic, when the group rescued the global oil industry by slashing production, was already fraying.
Last summer, Saudi Energy Minister Prince Abdulaziz bin Salman dismissed the agency’s recommendation to meet climate goals by curbing hydrocarbon investments as a fantasy akin to the Hollywood musical, “La La Land.” In turn, the IEA’s Birol criticized OPEC+ members in April for causing “artificial tightness” in oil markets by holding supplies back.
With the group apparently willing to let prices flare and the international community set on bringing them under control, it’s hard to see the producing and consuming blocks getting back on the same page soon.
Putin Speaks With #Saudi Crown Prince to Buttress Key Alliance - Bloomberg
Putin Speaks With Saudi Crown Prince to Buttress Key Alliance - Bloomberg
President Vladimir Putin spoke by phone with Saudi Arabia’s Crown Prince Mohammed bin Salman on Thursday, buttressing a crucial geopolitical alliance as Western sanctions batter Russia’s economy.
Putin’s invasion of Ukraine has left Russia more economically isolated than it has been in decades, with many of its banks cut off from the global financial system and traders reluctant to handle its oil shipments.
OPEC+, which is led by Saudi Arabia and Russia, largely ignored this escalating crisis at a meeting on Wednesday. But the cartel is under growing pressure to boost production to ease crude prices, a move that could potentially create tensions between Moscow and Riyadh.
“Putin stressed the unacceptability of politicizing global energy supply issues” in the call, according to a statement from the Kremlin. The discussion emphasized “mutual interest in further comprehensive development of the Russian-Saudi partnership.”
President Vladimir Putin spoke by phone with Saudi Arabia’s Crown Prince Mohammed bin Salman on Thursday, buttressing a crucial geopolitical alliance as Western sanctions batter Russia’s economy.
Putin’s invasion of Ukraine has left Russia more economically isolated than it has been in decades, with many of its banks cut off from the global financial system and traders reluctant to handle its oil shipments.
OPEC+, which is led by Saudi Arabia and Russia, largely ignored this escalating crisis at a meeting on Wednesday. But the cartel is under growing pressure to boost production to ease crude prices, a move that could potentially create tensions between Moscow and Riyadh.
“Putin stressed the unacceptability of politicizing global energy supply issues” in the call, according to a statement from the Kremlin. The discussion emphasized “mutual interest in further comprehensive development of the Russian-Saudi partnership.”
Oil steadies from decade-highs as Iran talks kindle supply hopes | Reuters
Oil steadies from decade-highs as Iran talks kindle supply hopes | Reuters
Oil steadied after hitting prices not seen in roughly a decade on Thursday, as sellers jumped in on hopes that the United States and Iran will agree soon to a nuclear deal that could add barrels to a badly undersupplied market.
Trade was volatile, however, as investors anticipate ongoing disruption to worldwide oil flows due to heavy sanctions on Russia after Moscow invaded Ukraine a week ago. Russia exports 4 to 5 million barrels of crude per day, second-most worldwide behind Saudi Arabia, and companies are now shunning Russian supply and scrambling for barrels elsewhere.
Brent futures rose 61 cents, or 0.5%, to $113.54 a barrel by 11:23 a.m. EST (1723 GMT), while U.S. West Texas Intermediate (WTI) crude rose 15 cents, or 0.1%, to $110.75.
Both benchmarks rose to multi-year highs earlier in the session, with Brent soaring to $119.84, its highest since May 2012 and WTI hitting its highest since September 2008 at $116.57.
Oil steadied after hitting prices not seen in roughly a decade on Thursday, as sellers jumped in on hopes that the United States and Iran will agree soon to a nuclear deal that could add barrels to a badly undersupplied market.
Trade was volatile, however, as investors anticipate ongoing disruption to worldwide oil flows due to heavy sanctions on Russia after Moscow invaded Ukraine a week ago. Russia exports 4 to 5 million barrels of crude per day, second-most worldwide behind Saudi Arabia, and companies are now shunning Russian supply and scrambling for barrels elsewhere.
Brent futures rose 61 cents, or 0.5%, to $113.54 a barrel by 11:23 a.m. EST (1723 GMT), while U.S. West Texas Intermediate (WTI) crude rose 15 cents, or 0.1%, to $110.75.
Both benchmarks rose to multi-year highs earlier in the session, with Brent soaring to $119.84, its highest since May 2012 and WTI hitting its highest since September 2008 at $116.57.
Higher oil prices boost Gulf markets, Aramco hits record high | Reuters
Higher oil prices boost Gulf markets, Aramco hits record high | Reuters
Middle East stock markets rose on Thursday boosted by energy and commodity linked assets as oil prices neared $120 a barrel and the cost of other resources soared.
The Ukraine war has triggered a dash for commodities that could be in short supply, while stock markets slipped as investors worried about higher inflation and slowing economic growth.
Brent crude oil is now up nearly 20% on the week, while everything from coal to natural gas and aluminium are surging as Western nations tighten sanctions on Russia following its invasion of Ukraine. Russia calls its actions a "special operation".
"Sanctions are pushing oil importers to look elsewhere for supplies at a time when the market is already struggling with rising demand and the sluggish supply policy laid out by OPEC," said Daniel Takieddine, CEO MENA at BDSwiss.
Saudi Arabia's benchmark share index (.TASI) ended 0.8% higher, with gains driven by Saudi Aramco which rose to a record high of 45 riyals and ended the session up nearly 3%.
Dubai's main index (.DFMGI) rose for the fifth consecutive session with gains of 0.4%. Heavyweights Emirates NBD Bank (ENBD.DU) and Emirates Integrated Telecommunications Company (DU.DU) boosted the index.
Abu Dhabi's index (.FTFADGI) was up 0.7%, while the Qatari index (.QSI) rose 0.2%.
Industries Qatar (IQCD.QA) was the top percentage gainer, and closed the session up 3%.
Outside the Gulf, Egypt's blue-chip index (.EGX30) gained 1%.
The Ukraine war has triggered a dash for commodities that could be in short supply, while stock markets slipped as investors worried about higher inflation and slowing economic growth.
Brent crude oil is now up nearly 20% on the week, while everything from coal to natural gas and aluminium are surging as Western nations tighten sanctions on Russia following its invasion of Ukraine. Russia calls its actions a "special operation".
"Sanctions are pushing oil importers to look elsewhere for supplies at a time when the market is already struggling with rising demand and the sluggish supply policy laid out by OPEC," said Daniel Takieddine, CEO MENA at BDSwiss.
Saudi Arabia's benchmark share index (.TASI) ended 0.8% higher, with gains driven by Saudi Aramco which rose to a record high of 45 riyals and ended the session up nearly 3%.
Dubai's main index (.DFMGI) rose for the fifth consecutive session with gains of 0.4%. Heavyweights Emirates NBD Bank (ENBD.DU) and Emirates Integrated Telecommunications Company (DU.DU) boosted the index.
Abu Dhabi's index (.FTFADGI) was up 0.7%, while the Qatari index (.QSI) rose 0.2%.
Industries Qatar (IQCD.QA) was the top percentage gainer, and closed the session up 3%.
Outside the Gulf, Egypt's blue-chip index (.EGX30) gained 1%.
Column: OPEC+ has an ostrich problem. It's ignoring Ukraine | Reuters
Column: OPEC+ has an ostrich problem. It's ignoring Ukraine | Reuters
The decision by OPEC+ to stick to its plans for only a small increase in crude oil output in April shows the producer group is increasingly disconnected from the new reality of the market following Russia's invasion of Ukraine.
The group that houses the Organization of the Petroleum Exporting Countries (OPEC) and allies - including Russia itself - agreed on Wednesday to maintain a long-planned 400,000 barrels per day (bpd) production increase next month. read more
The group made no mention of the Ukraine crisis in a statement after the meeting, only referring to unspecified "geopolitical developments".
But more telling was the statement that the "current oil market fundamentals and the consensus on its outlook pointed to a well-balanced market, and that current volatility is not caused by changes in market fundamentals."
OPEC+ is both right and wrong in this assessment.
The group that houses the Organization of the Petroleum Exporting Countries (OPEC) and allies - including Russia itself - agreed on Wednesday to maintain a long-planned 400,000 barrels per day (bpd) production increase next month. read more
The group made no mention of the Ukraine crisis in a statement after the meeting, only referring to unspecified "geopolitical developments".
But more telling was the statement that the "current oil market fundamentals and the consensus on its outlook pointed to a well-balanced market, and that current volatility is not caused by changes in market fundamentals."
OPEC+ is both right and wrong in this assessment.
OPEC+ Faces Russia Reckoning Despite Effort to Ignore War - Bloomberg video
OPEC+ Faces Russia Reckoning Despite Effort to Ignore War - Bloomberg
OPEC+ is doing its best to ignore the Ukraine war started by one of its leading members, but it may not be able to for much longer.
Russia’s invasion of Ukraine, oil’s surge beyond $110 a barrel and the resulting mayhem in financial markets barely figured in the cartel’s meeting on Wednesday. The group ratified a 400,000 barrel-a-day production increase that was scheduled for April and wrapped up in a record time of just 13 minutes.
Mexican Energy Minister Rocio Nahle tried to raise the subject of Russia, but other members of the 23-nation coalition led by Saudi Arabia and Moscow swiftly moved on to other matters, delegates said. Nahle confirmed she asked a question about Russia, and that she was satisfied with the response.
“They wanted to duck at this meeting -- the path of least resistance was to stick to the plan,” Bob McNally, head of Washington-based consultant Rapidan Energy Group, said in a Bloomberg Television interview. The next meeting on March 31 “is going to be a lot sportier than this one.”
Russia’s invasion of Ukraine, oil’s surge beyond $110 a barrel and the resulting mayhem in financial markets barely figured in the cartel’s meeting on Wednesday. The group ratified a 400,000 barrel-a-day production increase that was scheduled for April and wrapped up in a record time of just 13 minutes.
Mexican Energy Minister Rocio Nahle tried to raise the subject of Russia, but other members of the 23-nation coalition led by Saudi Arabia and Moscow swiftly moved on to other matters, delegates said. Nahle confirmed she asked a question about Russia, and that she was satisfied with the response.
“They wanted to duck at this meeting -- the path of least resistance was to stick to the plan,” Bob McNally, head of Washington-based consultant Rapidan Energy Group, said in a Bloomberg Television interview. The next meeting on March 31 “is going to be a lot sportier than this one.”
#UAE's business sentiments show 'marked improvement' in Feb on rising customer demand | Markets – Gulf News
UAE's business sentiments show 'marked improvement' in Feb on rising customer demand | Markets – Gulf News
Business conditions in the UAE recorded a ‘marked improvement’ during February, with the private sector recording gains in demand. There was also increased optimism about future sales as UAE entities oversaw the challenges posed by the Omicron virus.
The upsurge was widely linked to rising client demand, with businesses also pointing to growth in tourism as the Expo 2020 continued and countries loosened their travel measures,” said David Owen, Economist at IHS Markit, the consultancy that tracks monthly PMI (Purchasing Managers Index) numbers as a gauge for private sector activity in a country
The sentiments were largely drawn before the onset of the Russia-Ukraine conflict on February 24. Even otherwise, UAE business say that global shipment delays are proving a bother as are rising material prices.
"Local vendors were able to deliver available inputs more quickly, and there are signs that supply problems are slowly easing as the world emerges from COVID-19 restrictions," said Owen. "This should aid businesses in relation to both capacity and cost pressures in the coming months."
Business conditions in the UAE recorded a ‘marked improvement’ during February, with the private sector recording gains in demand. There was also increased optimism about future sales as UAE entities oversaw the challenges posed by the Omicron virus.
The upsurge was widely linked to rising client demand, with businesses also pointing to growth in tourism as the Expo 2020 continued and countries loosened their travel measures,” said David Owen, Economist at IHS Markit, the consultancy that tracks monthly PMI (Purchasing Managers Index) numbers as a gauge for private sector activity in a country
The sentiments were largely drawn before the onset of the Russia-Ukraine conflict on February 24. Even otherwise, UAE business say that global shipment delays are proving a bother as are rising material prices.
"Local vendors were able to deliver available inputs more quickly, and there are signs that supply problems are slowly easing as the world emerges from COVID-19 restrictions," said Owen. "This should aid businesses in relation to both capacity and cost pressures in the coming months."
#Saudi Business Activity Ends Months long Funk But Employment Lags - Bloomberg
Saudi Business Activity Ends Monthslong Funk But Employment Lags - Bloomberg
Business conditions in Saudi Arabia improved for the first time since September as the effects of the pandemic ebbed away despite sluggish gains in employment and some labor shortages.
A Purchasing Managers’ Index compiled by IHS Markit rose to 56.2 in February from 53.2 during the previous month. The gain was led by a surge in new business growth, better sentiment and customer demand.
“The omicron wave on the non-oil economy was only mild,” said David Owen, economist at IHS Markit. “Signs of improving market conditions meant that business optimism was at its highest since January 2021, as firms expect demand growth to remain robust and the impact of the pandemic to subside.”
In Egypt, business confidence fell to its lowest level in the series history, due to concerns about economic conditions and the impact of high prices. The overall index inched up slightly to 48.1 in February from 47.9 a month earlier, but it was the fifteenth straight monthly contraction as price pressures weighed on business confidence and consumer spending.
Business conditions in Saudi Arabia improved for the first time since September as the effects of the pandemic ebbed away despite sluggish gains in employment and some labor shortages.
A Purchasing Managers’ Index compiled by IHS Markit rose to 56.2 in February from 53.2 during the previous month. The gain was led by a surge in new business growth, better sentiment and customer demand.
“The omicron wave on the non-oil economy was only mild,” said David Owen, economist at IHS Markit. “Signs of improving market conditions meant that business optimism was at its highest since January 2021, as firms expect demand growth to remain robust and the impact of the pandemic to subside.”
- Saudi Arabia saw only a mild uptick in employment and some data suggested staff shortages linked to Covid-19
- There was a rebound in sales, attributed to more customer demand and lower virus cases
- New export orders fell for the second straight month
- Companies looked to capitalize by increasing their input purchases at the fastest pace in about three years
- Business confidence picked increased to the highest level since January 2021
In Egypt, business confidence fell to its lowest level in the series history, due to concerns about economic conditions and the impact of high prices. The overall index inched up slightly to 48.1 in February from 47.9 a month earlier, but it was the fifteenth straight monthly contraction as price pressures weighed on business confidence and consumer spending.
#Dubai Plans Savings Fund for Foreigners Working in Government - Bloomberg
Dubai Plans Savings Fund for Foreigners Working in Government - Bloomberg
Dubai, the Middle East’s financial hub, said it will set up a savings fund for foreign employees working in government, the emirate’s latest step to retain and attract talent.
The fund will be supervised by the Dubai International Financial Center and run in partnership with international institutions, according to a statement. Expatriates will be able to access portfolios in both traditional and Islamic investment funds.
A committee will look into access for private-sector employees, it added.
The United Arab Emirates, made up of seven emirates including Dubai, has been introducing new labor regulations that make it easier for foreigners to work.
They include so-called golden visas that grant holders a 10-year residency permit and allow retired foreigners to stay on. Expatriate residents make up nearly 90% of the UAE population but many left as the pandemic eliminated some employment opportunities.
Dubai, the Middle East’s financial hub, said it will set up a savings fund for foreign employees working in government, the emirate’s latest step to retain and attract talent.
The fund will be supervised by the Dubai International Financial Center and run in partnership with international institutions, according to a statement. Expatriates will be able to access portfolios in both traditional and Islamic investment funds.
A committee will look into access for private-sector employees, it added.
The United Arab Emirates, made up of seven emirates including Dubai, has been introducing new labor regulations that make it easier for foreigners to work.
They include so-called golden visas that grant holders a 10-year residency permit and allow retired foreigners to stay on. Expatriate residents make up nearly 90% of the UAE population but many left as the pandemic eliminated some employment opportunities.
Gulf bourses rise amid scramble for resources | Reuters
Gulf bourses rise amid scramble for resources | Reuters
Markets in the Middle East rose on Thursday as investors chased resources-linked assets, with oil prices surging past levels last seen in Feb. 2013.
Brent crude topped $117 per barrel and is now up almost 20% on the week, while everything coal to natural gas and aluminium was also in high demand as Western nations tighten sanctions on Russia.
Asian shares eked out gains after reassuring comments from the Federal Reserve helped Wall Street bounce.
Russian troops were in the centre of the Ukrainian port of Kherson on Thursday after a day of conflicting claims over whether Moscow had captured a major urban centre for the first time in its eight-day invasion. read more
Energy-heavy Saudi Arabia's benchmark share index (.TASI) rose 0.7%, with gains driven by oil giant Saudi Aramco, which rose 3.4% to a record high of 44.5 riyals. (2222.SE).
Dubai's main index (.DFMGI) rose for the fifth consecutive session with gains of 0.9%. Dubai Islamic Bank (DISB.DU) was up 1.2% and Emaar Properties (EMAR.DU) trading 1.6% higher.
Abu Dhabi's index (.FTFADGI) was up 0.3%, while the Qatari index (.QSI) was flat.
Markets in the Middle East rose on Thursday as investors chased resources-linked assets, with oil prices surging past levels last seen in Feb. 2013.
Brent crude topped $117 per barrel and is now up almost 20% on the week, while everything coal to natural gas and aluminium was also in high demand as Western nations tighten sanctions on Russia.
Asian shares eked out gains after reassuring comments from the Federal Reserve helped Wall Street bounce.
Russian troops were in the centre of the Ukrainian port of Kherson on Thursday after a day of conflicting claims over whether Moscow had captured a major urban centre for the first time in its eight-day invasion. read more
Energy-heavy Saudi Arabia's benchmark share index (.TASI) rose 0.7%, with gains driven by oil giant Saudi Aramco, which rose 3.4% to a record high of 44.5 riyals. (2222.SE).
Dubai's main index (.DFMGI) rose for the fifth consecutive session with gains of 0.9%. Dubai Islamic Bank (DISB.DU) was up 1.2% and Emaar Properties (EMAR.DU) trading 1.6% higher.
Abu Dhabi's index (.FTFADGI) was up 0.3%, while the Qatari index (.QSI) was flat.
Oil prices hit multi-year highs as supply tightens | Reuters
Oil prices hit multi-year highs as supply tightens | Reuters
Benchmark Brent crude oil prices climbed close to $120 a barrel on Thursday, with Russian oil exports disrupted as traders try to avoid becoming entangled in sanctions.
Support also came from U.S. crude stockpiles at multi-year lows, helping to lift Brent crude futures as high as $119.84 a barrel for the highest level since 2012.
By 1024 GMT the contract was up $2.18, or 1.9%, at $115.11 a barrel.
Brent has jumped by about 37% in the past 30 days and the contract's six-month spread hit a record high on Thursday at more than $21 a barrel, indicating very tight supplies.
U.S. West Texas Intermediate crude hit a high of $116.57, its loftiest since 2008, before retreating a little to $113.12, up $2.52 or 2.3%.
The gains followed a fresh round of U.S. sanctions that target Russia's oil refining sector, raising concerns that Russian oil and gas exports could be targeted next. read more
Benchmark Brent crude oil prices climbed close to $120 a barrel on Thursday, with Russian oil exports disrupted as traders try to avoid becoming entangled in sanctions.
Support also came from U.S. crude stockpiles at multi-year lows, helping to lift Brent crude futures as high as $119.84 a barrel for the highest level since 2012.
By 1024 GMT the contract was up $2.18, or 1.9%, at $115.11 a barrel.
Brent has jumped by about 37% in the past 30 days and the contract's six-month spread hit a record high on Thursday at more than $21 a barrel, indicating very tight supplies.
U.S. West Texas Intermediate crude hit a high of $116.57, its loftiest since 2008, before retreating a little to $113.12, up $2.52 or 2.3%.
The gains followed a fresh round of U.S. sanctions that target Russia's oil refining sector, raising concerns that Russian oil and gas exports could be targeted next. read more
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