Concerns over the possible outbreak of war between the world’s two major oil producers Russia and Ukraine have prompted black commodity trade to rise even higher.
In the Asian session, US WTI futures traded hovering at $ 94.80 a barrel after touching $ 95 for the first time since September 2014 in the previous session.
The surge was driven by the actions of the President of Ukraine who declared February 16 as a day of unity, on which date some Western media touted that Russia would launch an attack.
Meanwhile, the benchmark Brent crude traded stronger at $ 95.80 a barrel, slightly down from the $ 96.70 level it reached in the previous session.
Meanwhile, investors are also targeting talks between the United States and Iran. Iran’s foreign minister said that Tehran wanted to get an agreement quickly in its nuclear talks in Vienna, provided its country’s interests were protected.
If an agreement can be reached, it may be able to offset concerns over global crude oil supply shortages with the return of production from Iran into the market.
Meanwhile, the head of the International Energy Agency (IEA), Fatih Birol urged the Organization of the Petroleum Exporting Countries (OPEC) and its ally, OPEC+ to meet their production commitments of 400,000 barrels a day.
According to the IEA’s latest monthly report, there was a gap between target and actual output that widened to 900,000 barrels a day in January.
