(Bloomberg) — Oil rallied as traders analyzed the impact of sanctions on Russia and a widening gap between futures in New York and London.
West Texas Intermediate oil jumped as much as 2.9% to extend its weekly gain. While U.S. President Joe Biden said that energy supplies would be omitted from sanctions for the time being, penalties on Russia’s five major banks and a stifling of the money that lubricates international trade threaten international supply.
Crude on Thursday soared to breach the $100 a barrel level, before paring gains after Biden said the U.S. is working with major consuming nations to coordinate a collective release from strategic petroleum reserves. Meanwhile, the discount of the U.S. grade to international benchmark ballooned to its widest since April 2020, possibly leading traders to explore arbitrage opportunities.
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by : Bloomberg