Oil one step closer to US$150 as Opec+ sits tight on output amid Ukraine invasion

OIL prices barrelled past an astonishing US$115 a barrel during the Asian session on Thursday (Mar 3), raising the spectre of an energy shock for the world after the oil cartel decided not to pump a lot more oil, even as the heightened Russia-Ukraine turmoil threatened to squeeze supply further.

Brent, the global crude benchmark, spiked 3.5 per cent to US$116.90 per barrel while US crude West Texas Intermediate (WTI) blasted to US$113.40 - 2.5 per cent up.

"While the possibility that the strict sanctions imposed against Russia may swing the global crude market into a deficit situation was the primary factor supporting crude, the fact that Opec and its allies agreed to only a modest supply increase also served as an important driver, as traders did not see any supply on the horizon which could quickly replace any shortfalls resulting from lower shipments from Russia," said TD Securities.