Brent rose to $118 per barrel for the first time in nine years

The oil market continues to grow, updating all new highs. Today, Brent oil quotes have reached the level of $118.20 per barrel for the first time since February 2013. The cost of North American WTI oil rose to $114.35 per barrel. 

Oil is getting more expensive against the background of a shortage due to the refusal of customers to purchase Russian raw materials. Analytical companies report that almost 70% of Russian oil trade has been frozen to date. Buyers are boycotting Urals oil, despite the large discount to the market (about $19) and the fact that the sanctions did not directly affect the energy sector.

Further deterioration of the situation in Ukraine will lead to the fact that an increasing number of major players in the oil market will withdraw from oil and gas projects in Russia and look for alternative sources of supply. And this will contribute to the continued growth of oil prices. To date, the American company Exxonmobil, the British-Dutch Shell, the British BP and the Norwegian Equinor have left the Russian market. 

To reduce high prices, members of the International Energy Agency (IEA) have agreed to sell 60 million barrels of oil from national reserves. The US Department of Energy also decided to release 30 million barrels from the country's strategic reserve. 

At the same time, the OPEC+ countries at yesterday's meeting decided not to accelerate the pace of increasing oil production and decided to maintain the plan to increase production quotas in April by 400 thousand barrels per day. The organization noted that the current fundamental indicators of the market and its future prospects indicate a good balance, and the current volatility is only a consequence of current geopolitical events.