Oil pipelines, pump rigs, and power lines dot California’s “Petroleum Highway” (Highway 33) that runs along the northwestern slopes of the San Joaquin Valley.
George Rose | beautiful pictures
U.S. oil rose to its highest level since Thursday 2008 before reversing and plunging into negative territory as the market weighed on supply disruptions from Russia ahead of a possible nuclear deal with Russia. Iran.
West Texas Intermediate crude futures contractUS oil benchmark, trading at a high of $116.57 per barrel, a price last seen on September 22, 2008. International Standard Brent Crude Oil reached $119.84, the highest level since May 2012.
Prices have since stabilized. WTI was down 1.7% at $108.75, while Brent was 1.4% lower at $111.41 a barrel. This move puts the contracts on track for the first negative day in four days.
Russia’s invasion of Ukraine fueled the oil narrative, sending oil prices soaring. A possible deal with Iran is one factor cited that could bring some immediate relief to a very tight market.
“Unless the thaw is palpable in the form of concessions from both sides and sanctions are lifted and/or Iran is allowed back into the market so it can start selling oil from its stockpile.” until output picks up, the risk premium is that PVM forecasts no discernible deflation,” brokerage PVM said Thursday in a note to clients.
Despite Thursday’s drop, both contracts remained in the green for the week. WTI is up about 19%, while Brent is up 14%.
The oil market was already tight before Russia invaded Ukraine, and with countries now shunning oil from key producer Russia, traders are concerned that supply will continue to fall short.
