Oil extends rally as Russia struggles to find new buyers

London, March 9

Oil rose towards $130 a barrel on Wednesday, supported by concern of a potential supply shock as the US banned Russian oil imports and amid signs that some buyers are already steering clear.

The US on Tuesday imposed a ban on Russian oil imports, Britain said it would phase them out and Shell said it would stop buying Russian crude.

JP Morgan estimated around 70% of Russian seaborne oil was struggling to find buyers.

“What is obvious is that the current crisis will not be resolved in the foreseeable (future) and consequently oil prices are expected to remain at elevated levels,” said Tamas Varga of oil broker PVM.

Brent crude was up $1.68 at $129.66 a barrel at 0905 GMT. US West Texas Intermediate (WTI) was up $1.60 to $125.30. Oil has surged since Russia launched attack on Ukraine. Brent hit $139 on Monday, the highest since 2008.

One potential source of extra oil supply is Iran, which has been in talks with Western powers for months on restoring a deal which lifted sanctions on Iran in return for curbs on its nuclear programme. — Reuters

NEARS $130/BARREL

Oil rose towards $130 a barrel on Wednesday, supported by concern of a potential supply shock as the US has banned Russian oil imports