The rise in crude oil was slightly limited as investors were gripped by concerns over supply shortages amid sanctions against Russia and new prospects in Iran’s nuclear talks.
The opening of the European session saw Brent crude futures trade steady at around $ 121 a barrel, while US WTI strengthened at $ 114 a barrel.
Both benchmarks have risen drastically this week, with Brent futures soaring over $ 14 a barrel or 13% while US WTI is up over $ 10 a barrel or 10%.
US President Joe Biden has arrived in Brussels to hold a meeting with his European allies to discuss new sanctions on Russia.
Investors are now worried if the European Union (EU) takes a ‘crazy’ decision to stop oil imports from Russia, given that the bloc is heavily dependent on Moscow.
If this happens, it will exacerbate the tightening of supply in the oil market as well as affect the larger European economy.
However, on the other hand, there are new prospects in Iran’s nuclear talks after White House national security adviser Jake Sullivan said the U.S. and its allies had made progress.
This is a bit of a distraction for oil prices from continuing to rise following expectations that Iranian oil will return to the market if such an agreement can be reached.
