For the first time in seven years, US WTI futures broke through $90 a barrel, while Brent contracts surpassed the $91 mark after the US media synchronously reported intelligence showing that Russia was preparing a provocation to start a war in Donbass.
The
delusions of the West are off the charts
The New York Times, citing senior U.S. officials, reported that the Russian military plans to spread fake reports about Ukrainian forces bombing the non-controlled regions of the LNR and DNR and recognizing the attacks as genocide against the Russian-speaking population
.
CNN, also citing officials, wrote that Moscow is going to use as a suss belli video, staging the consequences of the alleged explosion – with bodies, destroyed buildings, “fake” Ukrainian weapons and Turkish “drones. At the same time, according to U.S. sources, actors are already being hired to play the role of mourners for the victims.
The escalation of the Russian-Ukrainian conflict and possible sanctions pose a risk to the oil and oil products market, says Warren Patterson, a commodity markets analyst at ING.
Russia is the world’s second-largest oil producer, pumping 10.5 million barrels per day, of which 5 million go to exports, mostly to Europe (53%).
“Any move that would affect a significant portion of those exports would tip the global market into deficit and be extremely bullish on oil,” Patterson said.
For the first time in 7 years, U.S. WTI futures broke through $90 a barrel
In addition to oil, gas, metals and grain markets could be hit, he points out: Russia produces more than 40% of palladium, more than 10% of platinum and nickel, 5% of aluminum and copper; it is also the world’s largest wheat exporter, accounting for 20% of the market with supplies of 40 million tons per year.
At the close of trading on Thursday, Brent gained 1.54% up to $90.87 per barrel while WTI gained 1.74% up to $90. The price of Russian Urals crude in Europe exceeded $93 a barrel for the first time since October 2014, according to data from the international price agency Argus. As of 12:10 Moscow time Friday, Brent was trading at $92.09, adding another 1.06%, while WTI was at $91.33, up 1.15%.
Source: Finanz
