Oil prices rose by roughly $1 per barrel on Thursday after breaking through significant technical support levels the previous day as investors focused on the potential for a future fuel supply deficit caused by a dispute over energy between European nations and Russia.
Brent crude futures increased by 91 cents, or 1%, to $88.91 a barrel by 0331 GMT after closing the previous session at their lowest level since early February. At $82.89 per barrel, US crude futures were up 95 cents, or 1.2 percent.
Prices rose as a result of Russian President Vladimir Putin’s threat to stop the nation’s oil and gas shipments if European purchasers implement price limitations.
Only a few hours later, the European Union put forth a proposal to cap Russian gas prices, which raised the prospect of rationing this winter in some of the richest countries if Moscow carries out its threat.
Russia’s Gazprom has already suspended the flow of the Nord Stream 1 pipeline, dramatically reducing the amount of supply going to Europe. As according analysts at Haitong Futures in a note, one of the external variables influencing the oil price trend is the energy war between Russia and the West.
They emphasized that Tehran’s nuclear program might be significantly impacted by a settlement or the restoration of an agreement between the West and Iran. Sanctions on Iranian oil exports would be lifted if an agreement was achieved.
In other news, the British newspaper The Telegraph reported earlier today that the country’s new prime minister, Liz Truss, will push for increased exploitation of the nation’s North Sea reserves and abolish the nation’s ban on fracking on Thursday in reaction to increasing energy prices.