Oil prices slashed earnings after a jump following orders from Russian President Vladimir Putin to partially mobilize to keep the occupied territories in Ukraine, an escalation that could further disrupt energy supplies.
Brent crude futures were up $ 1.35, or 1.5 percent, to $ 91.97 per barrel by 1343 GMT, while US West Texas Intermediate crude reached $ 85.14 per barrel, up of $ 1.20, or 1.4%. Both contracts were up about 3% at the start of the session.
Putin said that Russia “will take the necessary measures to defend its sovereignty and will defend the land with all available means”. The Kremlin moved to hold a vote to annex the areas still controlled by Moscow into Ukraine.
step up Tension in Ukraine Before the Federal Reserve’s decision on monetary policy. The central bank is expected to raise interest rates by 75 basis points on Wednesday.
Crude is on track to post its first quarterly loss in more than two years as fears of a global economic slowdown weigh on the outlook for energy demand. The Fed’s decision will be followed by decisions by other central banks from Europe to Asia, which should also increase borrowing costs.
Khaled Al-Awadi, Hawk Energy’s energy consultant, predicted, in an interview with Al-Arabiya, that the scenario of the rocket rising in energy prices would not repeat itself after the escalation of tension in Ukraine against the backdrop of mobilization in Russia .
At worst, he said, “we will not see more of what happened last March when prices rose to fantastic levels.”
He stressed that the tension on the market is always present, and if oil rises from 5% to 10%, it will decrease again, given the signs of economic recession in Europe, the impact of purchasing power, the enormous European energy bill, and the risk of a complete interruption of Russian gas flows to Europe.
The average oil price was expected to be below $ 100 this September, due to tensions and fluctuations in the energy markets, most of which will affect the price of European and Asian gas, alluding to the conclusion of fantastic price deals on the liquefied gas in Asia, which we did not see a year ago at about 6 or 7 times the usual prices.
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