After a minor dissipation in the tension in the Middle East, another war front has lightened up, thereby pushing the fossil fuel prices up. This time, it is the two-year-old Russia-Ukraine conflict. The most recent development in the war has sent ripple effects across the board.
Fuel Prices Jump
In a major move, the outgoing president of the United States, Joseph Biden, gave the much-awaited green signal to the Ukrainian forces under President Volodymyr Zelenskyy to use US-made long-range weapons to strike strategic targets inside Russian territory.
This has elicited a strong response from the Putin-led Russian Federation. In addition, it has also led to an uptick in prices of crude oil in the international market.
Brent Crude
The price of the benchmark Brent Crude rushed back to the over USD 70 per barrel territory. As per the latest report from Reuters, the price of Brent crude stood at USD 73.43 per barrel.
Brent Crude Price Progression | Reuters
According to the most recent update, the price shot up by USD 0.13 or 0.18 per cent. Brent crude's 52-week range stood at USD 68.68 - USD 92.18.
WTI Surges
When we look at the other benchmark, the West Texas Index or WTI also rose, inching closer to the USD 70 per barrel mark. The price of the WTI Index rose to USD 69.21 per barrel.
WTI Price Progression | Reuters
The recent surge in prices amounted to 0.07 per cent or USD 0.05. The 52-week range for WTO stood at USD 65.27 - USD 87.67.
Many anticipate the severity of the conflict in Eastern Europe to surge after the US government's new direction on Kyiv, thereby inflicting further volatility on an already fragile market.
In addition to the Russia-Ukraine factor, another aspect that has not been widely discussed is the halt in production at Norway's Johan Sverdrup oilfield. Norway is the largest producer of fossil fuel in Europe, with the exception of Russia.
