Oil prices exceed $120 per barrel

Yesterday, oil prices crossed the barrier of $120 a barrel, due to the disruption of crude exports from Russia and Kazakhstan through the Caspian Sea pipeline, and a sudden drop in US oil stocks by 2.5 million barrels.

The disruption of the Caspian Sea pipeline, which is one of the largest crude oil shipping pipelines in the world, appears to have become a new factor in energy supply pressures. Russia says that the reforms could take two months, which would reduce global oil production by about 1 percent, or one million barrels per day.

Brent crude immediately rose 4.8 percent to $121.13 a barrel by 17:52 GMT yesterday. The price had fallen earlier to 114.45 dollars a barrel. And the price of West Texas Intermediate crude rose 4.50 percent to 114.23 dollars a barrel, and it had fallen earlier to 108.38 dollars a barrel.

Markets remained concerned about the possibility of additional sanctions against Russia, the second largest oil exporter in the world, at a time when Russian Deputy Prime Minister Alexander Novak warned that oil and gas markets could collapse in the event of sanctions on Russian energy, and said that “the increase in oil prices The energy will not be expected.”

In response to Western sanctions, Russian President Vladimir Putin announced yesterday that his country would start selling gas in rubles to “unfriendly countries”, prompting an immediate rise in the prices of natural gas futures contracts in Europe by more than 20 percent.

The rise in gas prices to record levels is consequently putting pressure on oil prices, as some countries resort to oil, as an alternative to gas, to ensure the provision of energy supplies to power stations.
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