Oil jumps with little progress in Russia-Ukraine talks

Oil prices continued to rise on Friday at the end of a volatile third week with little progress in peace talks between Russia and Ukraine, raising fears of tighter sanctions and prolonged oil supply disruptions.

Russian President Vladimir Putin, in a stern speech on Thursday, denounced “traitors and scum” at home who helped the West and said the Russian people would spit on them like mosquitos, adding to market tension over prolonging the conflict.

Brent crude futures jumped $2.43, or 2.3 percent, to $109.07 a barrel by 0141 GMT, after rising nearly 9 percent on Thursday in the biggest percentage increase since mid-2020.

US West Texas Intermediate crude futures rose $2.75, or 2.7 percent, to $105.73 a barrel, after an eight percent jump yesterday.

But despite the recovery, the two benchmark contracts are heading towards ending the week down by about four percent. Prices have fallen from a 14-year high hit nearly two weeks ago.

The volatility throughout the week was led by a supply shortage caused by sanctions against Russia, stalled nuclear talks with Iran, dwindling oil inventories and fears that demand would be hit by an increase in coronavirus cases in China.

Analysts said Putin’s speech, remarks by a Kremlin spokesperson that a report indicating significant progress in peace talks had been made, and US President Joe Biden calling his Russian counterpart Putin a “war criminal” led to a wave of buying on Thursday.