Brent crude hit a seven-year high above $90 a barrel on Wednesday but eased on Thursday as the market balanced concerns about tight worldwide supply with expectations the U.S. Federal Reserve will soon tighten monetary policy.
Prices had surged on Wednesday, with Brent climbing above $90 a barrel for the first time in seven years amid tensions between Russia and the West. Threats to the United Arab Emirates from Yemen’s Houthi movement had added to oil market jitters.
Russia, the world’s second-largest oil producer, and the West have been at loggerheads over Ukraine, fanning fears that energy supplies to Europe could be disrupted, although concerns are focused on gas supplies rather than crude.
Benchmark Brent fell 15 cents to $89.81 a barrel by 1:17 p.m. EST (1817 GMT), while U.S. crude fell 20 cents to $87.15 a barrel in a volatile session with both contracts see-sawing between positive and negative territory.
“The market is very erratic on headlines on the Russia-Ukraine situation,” said Phil Flynn, senior analyst at Price Futures Group. “There’s uncertainty about what’s going to happen.” [Reuters]
Join Daily Trust WhatsApp Community For Quick Access To News and Happenings Around You.
