SULAIMANI (ESTA) — Oil prices extended gains to seven-year highs on Wednesday as supply disruption fears mounted following hefty sanctions on Russian banks amid the intensifying Ukraine conflict.
Brent crude futures rose $4.85 to $109.82 a barrel at 0601 GMT, a level last seen in July 2014.
U.S. West Texas Intermediate (WTI) crude futures gained $4.75 to $108.16, after earlier hitting the highest since September 2013.
“Trade disruptions are starting to get people’s attention,” Reuters quoted Westpac economist Justin Smirk as saying.
“Issues around trade finance and insurance – that’s all impacting exports from the Black Sea. The supply shocks are unfolding,” he said.
Exxon Mobil said on Tuesday it would exit Russia oil and gas operations as a result of Moscow’s invasion of Ukraine, according to Reuters.
The decision will see the firm pull out of managing large production facilities on Sakhalin Island in Russia’s Far East.
“People are not touching Russian barrels. You may see some on the water right now, but they were bought prior to the invasion. There won’t be much after that,” one New Yorker Harbor trader told Reuters.
