Oil prices recoup losses as Russia-Ukraine tensions stay high
Add BT as a preferred source
DeeperDive is a beta AI feature. Refer to full articles for the facts.
[LONDON] Oil prices recouped losses on Wednesday (Feb 16) as investors weighed conflicting statements on the possible withdrawal of some Russian troops from around Ukraine amid tight global supplies and recovering fuel demand.
Brent crude was up US$1.28, or 1.4 per cent, at US$94.56 a barrel around 1320 GMT, having slid 3.3 per cent overnight after Russia announced a partial pullback of its troops near Ukraine.
US West Texas Intermediate (WTI) crude was up US$1.14, or 1.2 per cent, at US$93.21 after the contract ended Tuesday's session with a 3.6 per cent decline.
Both benchmarks hit their highest since September 2014 on Monday, with Brent touching US$96.78 and WTI reaching US$95.82.
The price of Brent jumped 50 per cent in 2021 while WTI soared by about 60 per cent as a global recovery in demand from the Covid-19 pandemic strained supplies.
Moscow announced a partial pullback of troops from Ukraine's borders, but Nato Secretary-General Jens Stoltenberg said on Wednesday that the alliance had not seen any de-escalation and that Russia was continuing its military build-up.
Navigate Asia in
a new global order
Get the insights delivered to your inbox.
"The risk of a full scale invasion has receded a bit. But we are unlikely to move out of the current status quo," said Bjarne Schieldrop, chief commodities analyst at SEB in Oslo.
Beyond Ukraine tensions, the oil market remains tight and prices could still be on course for a move towards US$100 a barrel.
"The market remains extremely tight and prices had been on an upward trajectory prior to the escalation. The softening of tensions may have only delayed the march to US$100," said Craig Erlam, senior market analyst at Oanda.
Investors were awaiting weekly US oil inventory data from the Energy Information Administration at 10.30 am (1530 GMT).
US crude and distillates inventories could have fallen by 1.5 million to 1.6 million barrels last week, a Reuters poll showed.
Data from the American Petroleum Institute showed a drop in crude, gasoline and distillate stocks last week, according to market sources on Tuesday. REUTERS
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Share with us your feedback on BT's products and services
