Fundamental analysis
25 February, 2022
Oil prices jumped nearly 3% on Friday as Russia's invasion of Ukraine stoked global supply concerns as markets brace for the potential impact of trade sanctions on major crude exporter Russia. The attack on Ukraine caused prices to surge to more than $100 a barrel for the first time since 2014 on Thursday, with Brent touching $105, before paring gains by the close of trade. The massed Russian assault by land, sea and air was the biggest attack on a European state since World War Two, prompting tens of thousands of people to flee their homes. In response to the invasion, U.S. President Joe Biden hit Russia with a wave of sanctions on Thursday, measures that impede Russia's ability to do business in major currencies along with sanctions against banks and state-owned enterprises. Britain, Japan, Canada, Australia and the European Union also unveiled more sanctions on Moscow, including a move by Germany to halt an $11 billion gas pipeline from Russia. The U.S. and Iran have been engaged in indirect nuclear talks in Vienna, in which a deal could lead to the removal of sanctions on Iranian oil sales and increase global supply. Iranian officials said on Twitter on Thursday that Western partners in the nuclear talks have to make decisions on crucial issues to help reach an agreement.
