Oil Catches Its Breath as Russian Forces Advance Into Ukraine

Oil prices fell on Friday after sharp increases during the session on fears of possible disruption to international supplies following the imposition of sanctions on oil-exporting Russia.

Brent crude futures for April fell 33 cents, or 0.3 percent, to $98.75 a barrel at 1045 GMT, after jumping to $101.99. May contracts fell 40 cents, or 0.4 percent, to $98.75 a barrel.

West Texas Intermediate crude fell 30 cents, or 0.3 percent, to $92.51 a barrel, after hitting an intraday high of $95.64.

Russia’s invasion of Ukraine on Thursday pushed prices above $100 a barrel for the first time since 2014, and Brent crude touched $105 a barrel.

In response to the invasion, US President Joe Biden imposed a raft of sanctions on Thursday, measures aimed at hampering Russia’s ability to use major currencies as well as sanctions against some banks and state-owned enterprises.

Britain, Japan, Canada, Australia, and the European Union also imposed sanctions, including a move by Germany to stop a license to develop a Russian gas pipeline at a cost of $11 billion.

But a US official said Russian oil and gas supplies were not specifically targeted by sanctions.

Russia is the world’s second-largest oil producer and a major supplier of natural gas to Europe.

The Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, or the cartel known as OPEC+, meet on Wednesday to determine whether they will abide by the current production deal, which calls for an increase in production by 400,000 barrels per day in April.