Publish Date: | Thu, 03 Mar 2022 09:57 AM (IST)
Crude Oil Price Update, Crude oil prices have skyrocketed due to the ongoing war between Russia and Ukraine. Today, the price of crude oil has come to a record high in the last 9 years. For the first time since February 2013, Brent crude prices have reached the level of $ 118 per barrel. As Russia’s attack on Ukraine intensified, the price of crude oil in the international market has reached $ 118 a barrel, despite the commitment of the governments of other major countries including the US to release oil from strategic reserves.
Significantly, even after the fear of war deepened, Brent crude oil rose by $ 5.43 to $ 113.40 in the stock and other markets compared to the day before. On the other hand, the US S&P 500 was up 0.9 per cent in early trade.
The effect of US Federal Reserve interest rates
Federal Reserve Chief Jerome Powell has informed the US Parliament that the US central bank is ready to increase interest rates this month. This will be the first interest rate hike since 2018. The US market is also seeing a rise due to the increase in interest rates. The US markets were seen trading in a bullish phase.
Oil released from strategic reserve
On Tuesday, all 31 member countries of the International Energy Agency (IEA) agreed to release 60 million barrels of oil from their strategic reserves, but despite this, there was no effect on oil prices and crude oil prices saw a jump. He took this step to signal to the oil market that Russia’s attack on Ukraine will not cut oil supplies. Significantly, Russia is the second largest oil producer in the world. In such a situation, the International Energy Agency has not been able to take any meaningful steps so far regarding the concerns arising out of supply disruptions from Russia.
Posted By: Sandeep Chourey