Crude oil trade climbed higher after President Vladimir Putin said that peace talks between Russia and Ukraine were at a stalemate and he would continue his aggression in the country.
Brent crude futures traded steady at $ 105 a barrel while US WTI traded at $ 100 a barrel after each gained more than 6% on Tuesday.
In his public speech on Tuesday, Putin blamed Ukraine for thwarting peace talks and said Moscow would not relinquish its ‘special operation’ to stop pressure from the West.
This in turn raises the prospect of sanctions on Russian oil in place as the European Union (EU) is also considering doing so.
OPEC had previously warned the EU that Russia’s oil cuts would cause major shocks in supply and they would not be able to replace the oil lost from the embargo.
In addition, the strengthening of prices was also supported by reports that Shanghai has begun easing some coronavirus restrictions in the city even though daily case figures are still high.
Investors had previously worried that continued sanctions in Shanghai would hurt fuel demand from the world’s second -largest economy due to the movement restrictions implemented.
