Despite Russia, Ukraine tussle, oil rallies for 8th consecutive week

…As Brent crude trades for $94.44, up 1.25% in week ended

The black liquid rallied 3% on Friday to trade at a price point not traded in seven years as escalating fears of an invasion of Ukraine by Russia, a top energy producer, added to concerns over tight global crude supplies.

According to the White House, Russia has massed enough troops near Ukraine to launch a major invasion, as it urged all U.S. citizens to leave the country within 48 hours.

Britain also advised its nationals to leave Ukraine as Prime Minister Boris Johnson impressed the need for NATO allies to make it absolutely clear that there will be a heavy package of economic sanctions ready to go, should Russia invade Ukraine.

Andrew Lipow, President of Lipow Oil Associates in Houston stated, “The market doesn’t want to be short going into the weekend… if an invasion appears to be imminent and you know that there will be retaliatory sanction that will result in a disruption in natural gas and oil supplies.”

Energy services firm Baker Hughes Co explained that in the United States, drillers added the most oil rigs in a week in four years, with the rig count, an indicator of future production, rising 19 to 516, its highest since April 2020.

The Biden administration responded to high prices by again stating this week that it has been talking with large producers about more output, as well as the possibility of additional strategic releases from large consumers, as it did late last year.

Indirect US-Iran nuclear talks resumed this week after a 10-day break. A deal could see the lifting of sanctions on Iranian oil and ease supply tightness.