Oil rises in turbulent trading after Caspian Sea pipeline disruption

Oil prices rose in volatile trading on Wednesday due to disruptions in crude exports from Russia and Kazakhstan via the Caspian Sea pipeline.

The price of Brent crude futures rose $3.13, or 2.7 percent, to record $118.61 a barrel. The price had fallen earlier to 114.45 dollars a barrel.

The price of West Texas Intermediate crude futures increased by $2.69, or 2.5 percent, to $111.96 a barrel, and had fallen earlier to $108.38 a barrel.

Markets remained concerned about the possibility of additional sanctions against Russia, the second-largest oil exporter in the world, after its invasion of Ukraine, which it describes as a “special operation”.

US President Joe Biden is due to announce more sanctions on Russia when he meets European leaders on Thursday in Brussels and attends emergency NATO meetings.

European Union countries remain divided over the ban on imports of Russian crude oil and products that continue to flow into them, but that could change when the short-term contracts expire.

Russia warned on Tuesday that oil exports through the Caspian pipeline consortium would drop by up to 1 million barrels per day, or 1 percent of global oil production, due to storm damage.

Exports through the pipeline were completely halted on Wednesday, and Ships Agency said repairs would take at least a month and a half.