Crude oil prices traded higher in early Asian trading on Friday after a wild session on Thursday after prices went above $100 a barrel before giving up the momentum after Russian energy supplies were spared from sanctions.
The West Texas Intermediate (WTI) down to the $90 level trading at $95. 50 per barrel while Brent is trading at $101.75 per barrel.
WTI inched down after President Joe Biden made it clear that western countries will not affect their own economy and put sanctions on Moscow.
Earlier while putting some of the toughest sanctions, US said said restrictions on currency clearing would include carve-outs for energy payments, a crucial source of revenue for Moscow. Mr Biden also said Russia will not be barred from the Swift international banking network because Europe opposed that action.
“The initial concerns that oil would be caught up in any sanctions on Russia has eased, resulting in prices pulling back from yesterday’s rally, said Mr Daniel Hynes, a senior commodity strategist at Australia and New Zealand Banking Group, as reported by Bloomberg.
“However, steep discounts being offered for Russian crude are still not receiving bids. This suggests there may still be some supply issues if banks can’t facilitate trade in the short term.”