ISLAMABAD: Crude oil prices surged up to 2.43 percent for the sixth straight week, hitting the seven-year highs last week.
The global oil prices were lifted by Russia-Ukraine tension, supply concerns and easing concerns over the spread of the Omicron coronavirus variant. In the previous five weeks, the global crude oil prices surged up to 2.13 percent, 5.27pc, 8.85pc, 2.15pc, and 4.13pc, respectively.
During the last week, the US West Texas Intermediate (WTI) reached $86.82 from $85.14, up by 1.97 percent. The lowest closing for the week, $83.31, remained on Monday while the highest closing  for the week was on Wednesday at $87.35.
Similarly, Brent, the international benchmark for two-thirds of the world’s oil, increased 2.43 percent during the week to reach $90.03 from $87.89 a barrel. The lowest closing for the week was $86.27 on Monday while the highest closing was observed on Friday at $90.03.
The price for Opec Basket surged 1.86 percent from $88.55 to $90.20 a barrel, Arab Light price increased 2.93 percent to reach $89.18 from $86.64 and the price of Russian Sokol jumped 2.33 percent to $90.89 from $88.82 a barrel during the last week.
As tensions between Russia and Ukraine grow, so does the risk that it spills over into global commodity markets. Keeping this factor in view, crude oil prices could soar if the Russia-Ukraine crisis escalates. With much of Europe captivated by the prolonged Russia-Ukraine standoff, speculation that Russian oil might be embargoed from the market added another geopolitical premium to prices.
The oil markets have also been taking comfort from a boost in demand optimism, as World Health Organisation (WHO) noted that Omicron cases are levelling off in the US, suggesting the US is approaching its infection peak. The WHO director general also said that cases are on the decline in South Africa, which is also good news for the oil industry.
Other factors that have pushed the oil prices to seven-year high include low inventories, as the US commercial stocks just fell for the third time in a row.
Simultaneously, supply scarcity remains a global worry as the Opec+ is not willing to increase output more than it is supposed to do under the terms of its agreement. Things are looking very bullish for oil markets indeed under these circumstances.
Again, the weather forecast indicates colder weather to come and this will keep demand high in Europe, giving another stimulus to the oil prices to maintain the rally.
