International Oil Prices Surpass $100 Due to Russian Encirclement Attack... WTI Hits $106 Intraday (Summary)

[Asia Economy New York=Special Correspondent Joselgina] On the 1st (local time), international oil prices surged as Russian forces attempted siege attacks on Kyiv, the capital of Ukraine, and Kharkiv, the second-largest city, while unleashing indiscriminate bombings. During the session, New York oil prices soared more than 11%, surpassing $106 per barrel.

On this day at the New York Mercantile Exchange, the April West Texas Intermediate (WTI) crude oil price closed at $103.41 per barrel, up about $7.69 (8%) from the previous session. This closing price is the highest since July 22, 2014. The daily increase rate reaching the 8% range is also the first since November 2020.

As geopolitical risks surrounding Russia and Ukraine intensified, WTI briefly surged 11.6% to $106.78 per barrel during the session. This is the highest level since June 2014. The international oil price benchmark Brent crude also traded around $107 per barrel, marking the highest level since July 2014.

There are expectations that commodity trading itself may become difficult as Western countries, including the United States, increase the level of sanctions against Russia. Additionally, news that Russian forces are deploying large tank units toward Kyiv has been evaluated as exerting upward pressure on oil prices. Russia is the world's third-largest oil producer.

The United States, South Korea, and 31 member countries of the International Energy Agency (IEA) decided to release 60 million barrels of emergency reserves during a video conference on this day. Half of the 60 million barrels of emergency reserves will come from the U.S. Strategic Petroleum Reserve, and the other half from European and Asian allies. The IEA stated in a press release, "The situation in the energy market is very serious," and "Global energy security is under threat."

The 60 million barrels represent about 4% of the total emergency reserves (1.5 billion barrels) of member countries. This is the fourth time member countries have agreed to release emergency reserves since the system was established following the 1974 Arab oil embargo.

However, there are also criticisms that this release volume is not large. Bob Yoger, Director at Mizuho Securities, pointed out that 60 million barrels correspond to only six days of Russia's production and twelve days of exports, saying "It is not that much." In the market, oil prices continued to maintain strength even after the IEA announcement on this day.

On the other hand, Rebecca Babin, Senior Energy Trader at CIBC Private Wealth, evaluated it as "an adequate buffer in the short term." The IEA also decided to consider additional releases depending on the situation.

This content was produced with the assistance of AI translation services.