• Sign up for the Daily Digest E-mail
  • Facebook
  • Twitter
  • LinkedIn

BOE Report

Sign up
  • Home
  • BOE Intel
  • Headlines
    • Latest Headlines
    • Featured Companies
    • Columns
    • Discussions
  • Well Activity
    • Well Licences
    • Well Activity Map
  • Property Listings
  • Land Sales
  • M&A Activity
    • M&A Database
    • AER Transfers
  • Markets
  • Rig Counts/Data
    • CAOEC Rig Count
    • Baker Hughes Rig Count
    • USA Rig Count
    • Data
      • Canada Oil Market Data
      • Canada NG Market Data
      • USA Market Data
      • Data Downloads
  • Jobs

Oil eases as Ukraine hints at concessions to Russia

February 14, 20227:35 AM Reuters0 Comments

Pump jack in Saskatchewan winter.

Oil eased on Monday, after earlier hitting its highest in more than seven years, as Ukraine hinted at possible concessions to Russia that could alleviate tensions between the two countries that Western governments say are on the brink of war.

U.S. West Texas Intermediate (WTI) crude dropped $1.10, or 1.17%, to $92.77 a barrel, after hovering near a session-high of $94.94, the loftiest since September 2014. 

CL1! chart by TradingView
Brent crude was down $1.02, or 1.07%, at $93.90 a barrel, after earlier hitting a peak of $96.16, the highest since October 2014.

“Market participants are concerned that a conflict between Russia and the Ukraine could disrupt supply,” said Giovanni Staunovo, commodity analyst at UBS.

He added that the oil market is very sensitive to any news of potential supply disruptions as oil inventories are low and spare capacity at oil producers is expected to fall further.

Comments from the United States about an imminent attack by Russia on Ukraine have rattled global financial markets.

Russia could invade Ukraine at any time and might create a surprise pretext for an attack, the United States said on Sunday.

“If… troop movement happens, Brent crude won’t have any trouble rallying above the $100 level,” OANDA analyst Edward Moya said in a note.

“Oil prices will remain extremely volatile and sensitive to incremental updates regarding the Ukraine situation.”

The tensions come as the Organization of the Petroleum Exporting Countries (OPEC) and its allies, a group known as OPEC+, struggle to ramp up output despite monthly pledges to increase production by 400,000 barrels per day (bpd) until March.

While geopolitical tensions help add to the bullish view, this oil supercycle is fundamentally driven, RBC Capital analysts said.

“We see upside visibility for prices to touch or flirt with $115/bbl or higher this summer,” said analyst Mike Tran in a note.

The International Energy Agency said the gap between OPEC+ output and its target widened to 900,000 bpd in January, while JP Morgan said the gap for OPEC alone was at 1.2 million bpd.

“We note signs of strain across the group: seven members of OPEC-10 failed to meet quota increases in the month, with the largest shortfall exhibited by Iraq,” JP Morgan analysts said in a Feb. 11 note.

The bank added that a supercycle is in full swing with “oil prices likely to overshoot to $125 a barrel on widening spare capacity risk premium”.

Investors are also watching talks between the United States and Iran to revive the 2015 nuclear deal.

Iran’s foreign ministry spokesman said on Monday that the talks have not reached a dead end, even though a senior Iranian security official said earlier that progress in talks was becoming “more difficult.”

Follow BOE Report
  • Facebook
  • Twitter
  • LinkedIn

Sign up for the BOE Report Daily Digest E-mail

Successfully subscribed

Latest Headlines
  • Tourmaline declares quarterly dividend, announces election of directors and updates forest fire situation
  • TOP WELL REPORT – April volumes – Ovintiv gets knocked off of top spot on the natural gas side while 8 different companies have top oil wells
  • Avila Energy Corporation is pleased to announce the Company’s acceptance of an initial financing commitment of U.S. $10 Million in Convertible Debentures and agreed upon use of proceeds in 2023
  • US natgas climbs as hot weather outlook boosts power demand prospects
  • 30 Days ‘Til The Calgary Stampede – It’s Time To Book Your Corporate Tables

Return to Home
Alberta GasMonthly Avg.
CAD/GJ
Market Data by TradingView

    Report Error







    Note: The page you are currently on will be sent with your report. If this report is about a different page, please specify.

    About
    • About BOEReport.com
    • In the News
    • Terms of Use
    • Privacy Policy
    • Editorial Policy
    Resources
    • App
    • Widgets
    • Notifications
    • Daily Digest E-mail
    Get In Touch
    • Advertise
    • Post a Job
    • Contribute
    • Contact
    • Report Error
    Featured In
    • CamTrader
    • Rigger Talk
    Data Partner
    BOE Network
    © 2023 Stack Technologies Ltd.