Saturday, April 1

Oil closed its best month in a year due to geopolitical risks and supply shortages

The price of a barrel of Brent oil for delivery in March ended the day in the London futures market at US$91.29, 1.5% more than at the end of the previous session.

For its part, the price of intermediate oil from Texas (WTI) closed with a up 1.5% to $88.15.

Benchmark contracts posted Friday highs not seen since October 2014, at $91.70 and $88.84, respectively, and their sixth consecutive weekly gain. This month they closed with an increase of 17%, the biggest jump since February 2021.

“Today, above all, concerns about supply cuts related to the Ukraine crisis are what continue to drive prices higher and higher,” said Carsten Fritsch, a commodity analyst at Commerzbank.

The US and its allies have prepared a list of members of the Russian elite in President Vladimir Putin’s inner circle, or close to him, to punish them with sanctions if Russia sends troops to Ukraine, a senior US official said Monday.

Giovanni Staunovo, a UBS analyst, commented that “Ongoing geopolitical tensions, more European countries planning to lift COVID-related restrictions, and further supply disruptions in Ecuador are supporting oil prices at the start of the week.”