New York oil prices rose as supply concerns persisted amid news that nuclear negotiations between Iran and the parties to the Joint Comprehensive Plan of Action (JCPOA) were halted.
On the 11th (local time) on the New York Mercantile Exchange, the price of West Texas Intermediate (WTI) for April contract finished trading at $109.33 per barrel, up $3.31 (3.1%) from the battlefield.
WTI prices fell 5.5% over the week.
Last week, WTI prices soared 26%.
Concerns over a supply shortage in the crude oil market are not being resolved, but it is interpreted that some retracement occurred this week as oil prices surged in the short term.
The news that negotiations to restore the Iranian nuclear deal (JCPOA) have been halted has fueled concerns about a supply shortage.
“External factors necessitate a temporary suspension of the Vienna negotiations,” said Sepf Borrell, the European Union’s senior foreign affairs and security policy representative, on Twitter.
Recently, as Russia tried to link Western sanctions on its own country to negotiations, the near-final Iran nuclear deal was on the verge of collapse.
Russia is one of the parties to the Iran nuclear deal.
Expectations of a resumption of Iranian oil exports have also diminished as negotiations stalled.
The US and EU announced additional sanctions against Russia today.
First, the United States, together with the G7 and NATO member states, decided to deprive Russia of most-favored-nation treatment under the ‘Permanent Normal Trade Relations’ (PNTR).
As a result, the basis for imposing high tariffs on Russian products is expected to be laid.
The U.S. has also decided to ban the import of Russian vodka, seafood and luxury goods such as diamonds.
The US previously banned the import of Russian oil.
The EU also stripped Russia of its most-favoured country preference, allowing the EU to impose punitive tariffs on Russian goods.
In addition, it has decided to ban the export of European luxury goods to Russia in order to block imports of Russian iron and steel and to inflict damage on the Russian elite.
Investors are watching the economic impact of the continuation of Western sanctions.
It is also expected that volatility will continue as the war situation between Russia and Ukraine is fluid.
Russian President Vladimir Putin has also said that some progress has been made in negotiations with Ukraine.
According to oil rig Baker Hughes, the number of rigs in operation in the U.S. reached 527 this week, up eight from the previous week.
This is the biggest increase since the week ended February 11.
/yunhap news