Brent rose 3.1% Monday to $100.99/bbl, while WTI spiked 4.5% to settle at $95.72/bbl, as severe new sanctions on Russia raised fears of tighter global supplies. By the end of yesterday’s session, WTI had notched its third consecutive monthly gain.
In mid-morning trading today, Brent futures were up another 7.8% at $103.22/bbl, WTI was up 6.8% at $104.81/bbl, and U.S. natural gas was 3.4% higher at $4.55/MMBtu.
War in Eastern Europe continues to impact global energy markets:
The U.S. and other major oil consumers are considering a release of 70 million barrels of oil from emergency stockpiles as crude prices surge.
Freight costs for Russian oil delivery are up fivefold over the past week, as some firms, including BP, refuse to load Russian fuel oil and Russian domestic producers receive little to no bids on spot tenders.
Fears of violating new Russian sanctions have prompted Volvo, Harley-Davidson and GM to indefinitely suspend car shipments to the Russian market, while Daimler is halting component shipments to its Russian partner.
The value of M&A activity of venture-backed logistics startups in the U.S. reached $2.7 billion in both 2020 and 2021, up nearly 69% from 2019, as the drive to solve logistics snarls coincides with cooling valuations for some private firms in 2022.
Rising prices in the ship-scrapping market are drawing more vessels to demolition yards.
Hong Kong saw a record 34,466 new COVID-19 cases yesterday as residents emptied store shelves in a scramble to prepare for a lockdown of the city later this month, when officials will carry out a mandatory, island-wide testing drive.