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- Oil prices will continue to rise due to warnings of Russian supply shortages
- Prices of the commodity climbed eight per cent on Thursday
- Over the recent weeks, oil benchmarks have undergone their most volatile period since mid-2020
- Over the eight trading days, Brent oil per barrel has traded as high as US$139 (A$188) to as low as US$98 (A$132)
- Nations around the world has banned purchases of Russia oil to punish Moscow for its invasion of Ukraine nearly three weeks ago
Predictions of high oil prices will return amid warnings of Russian supply shortages.
Prices of the commodity climbed eight per cent on Thursday.
Over the recent weeks, oil benchmarks have undergone their most volatile period since mid-2020.
Oil prices dropped after buyers cashed in on the run-up, prices then resurged on expectations that shortages will soon impact the energy market.
Benchmark Brent crude futures added US$8.62 (A$11.67), or 8.79 per cent, at US$106.64 (A$144) a barrel, its largest percentage gain since mid-2020.
U.S. West Texas Intermediate (WTI) crude rose US$7.94 (A$10.75), or 8.35 per cent, to US$102.98 (A$139) a barrel.
Over the eight trading days, Brent oil per barrel has traded as high as US$139 (A$188) to as low as US$98 (A$132), around a US$40 (A$54) difference.
This change in prices has pushed many investors to exit, creating for more wild price swings in the coming weeks, according to traders, bankers and analysts.
Nations around the world has banned purchases of Russia oil to punish Moscow for its invasion of Ukraine nearly three weeks ago.
Russia is the world’s biggest exporter of crude oil and fuel products.
The International Energy Agency (IEA) said three million barrels per day (bpd) of Russian oil and products could be shut in from next month.
It went on to add the loss would be far greater than an expected drop in demand of one million bpd from higher fuel prices.
Morgan Stanley has raised its Brent price forecast US$20 to US$120 (A$27 to A$162) a barrel for the third quarter, which it predicts a drop in Russian production of about one million bpd from April.
The bank said that loadings continue at Russian ports, however, a “destination unknown” is rising. More Russian tankers are on the water as these exports are “starting to struggle to find a market,” it added.
