Oman crude gained $9.96 per barrel overnight – the biggest single day surge – to settle at $110.81 per barrel on Wednesday, tracking sharp spikes recorded by international benchmarks in response to the escalating crisis between Russia and Ukraine. In comparison, the marker price of Oman crude on Tuesday was $100.85/b on the Dubai Mercantile Exchange.
The crude price average for March delivery was $83.62 per barrel, which was higher by $10.48/b compared to the February delivery average.
According to Reuters, Brent crude futures rose by nearly $9, reaching a peak of $113.94 a barrel, the highest since June 2014, before easing to $113.07, up by $8.10 or 7.7 per cent. US West Texas Intermediate (WTI) crude futures jumped more than $9 to $112.51 a barrel, hitting the highest since August 2013 before losing some steam to trade up $7.74 or 7.5 per cent to $111.15 a barrel.
"Investors, traders, and politicians alike are scrambling to address the worsening Russia-Ukraine standoff. The initial upward price reaction after the conflict in Ukraine started six days ago is only intensifying," said Rystad Energy analyst Louise Dickson.
Meanwhile, a coordinated release of 60 million barrels of oil by International Energy Agency member countries agreed on Tuesday failed to reassure the market, and prices rose after the announcement.
In a move likely to exacerbate global supply tightness, buyers are avoiding oil from the CPC pipeline originating in Kazakhstan, source of over 1 per cent of the world's supply, due to sanctions concerns.
The Organisation of the Petroleum Exporting Countries, Russia and allies, together known as OPEC+, agreed on Wednesday to again raise their monthly output by 400,000 barrels per day. - (With inputs from Reuters)
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