MELBOURNE (Reuters) – Oil prices extended their rally on Friday at the end of a third volatile week of trading as there was little progress in Russia-Ukraine peace talks, raising the specter of tougher sanctions and a prolonged oil supply disruption .
A speech by Russian President Vladimir Putin on Thursday warned “traitors and scum” at home who helped the West that they would be spat out like mosquitoes adding to market jitters over a protracted conflict.
futures were up $2.43, or 2.3%, to $109.07 a barrel at 0141 GMT, after rising nearly 9% on Thursday in the largest percentage gain since mid-2020.
US West Texas Intermediate (WTI) crude futures were up $2.75, or 2.7%, to $105.73 a barrel, contributing to an 8% jump on Thursday.
Despite the recovery, both benchmark contracts were expected to finish the week at around 4%, having traded in a range of $16. Prices have fallen from the 14-year high of almost two weeks ago.
“I still expect more volatility. There is still a lot of uncertainty,” said Justin Smirk, senior economist at Westpac in Sydney.
The supply crisis caused by sanctions against Russia, faltering nuclear talks with Iran, dwindling oil supplies and concerns about a wave of COVID-19 cases in China hitting demand all made for a rollercoaster ride of the week.
Analysts said Putin’s speech, comments from a Kremlin spokesman who said a report on major progress in peace talks was “wrong” and that US President Joe Biden calling Putin a “war criminal” all led to a wave of purchases on Thursday. led.
The volatility has scared players out of the oil market, which in turn is likely to exacerbate price swings, traders, bankers and analysts said.
“In such a tight market and such an illiquid paper market — you get some volatility,” Smirk said.Disclaimer: Fusion Media would like to remind you that the data on this website is not necessarily real-time or accurate. All CFDs (Stocks, Indices, Futures) and Forex prices are not provided by exchanges but rather by market makers, and therefore prices may not be accurate and may differ from the actual market price meaning prices are indicative and not suitable for trading purposes . Therefore, Fusion Media does not bear any responsibility for any trading losses that you may incur as a result of using this data.
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