LONDON: Oil prices climbed over seven per cent on Thursday, continuing a series of wild daily swings, as the market rebounded from several days of losses on a renewed focus on supply shortages in coming weeks due to sanctions on Russia.

Oil benchmarks in recent weeks have experienced their most volatile period since mid-2020.

After sliding as buyers cashed in on the run-up, prices resumed their upward trend on expectations that shortages will soon squeeze the energy market.

Benchmark Brent crude futures gained $8.23, or 8.4pc, to $106.25 a barrel by 1545 GMT. US West Texas Intermediate (WTI) crude was up $7.42, or 7.8pc, to $102.46 a barrel.

Numerous nations have banned purchases of Russian oil after that nation invaded Ukraine nearly three weeks ago. Russia, which calls the action a “special operation,” is the world’s biggest exporter of crude oil and fuel products. Refiners and end-users must make quick adjustments for coming weeks.

The International Energy Agency (IEA) said three million barrels per day (bpd) of Russian oil and products could be shut in from next month. That loss would be far greater than an expected drop in demand of 1m bpd from higher fuel prices, the IEA said.

Published in Dawn, March 18th, 2022