The price of oil fell on Friday after rising sharply early in the session due to concerns about potential global supply disruptions caused by sanctions against Russia, a major crude exporter.
Despite rising as high as $101 a barrel, April Brent crude futures settled at $97.93 a barrel, down 1.2%. May crude futures lost 1.4% to $94.12.
U.S. West Texas Intermediate (WTI) crude fell $1.22, or 1.3%, to settle at $91.59 a barrel, after hitting a session high of $95.64.
The Brent crude oil price rose 4.7% for the week, while WTI rose 0.6%.
Brent crude hit $105 a barrel on Thursday, marking the first time since 2014 that the price of oil has surpassed $100.
Tens of thousands of people fled their homes after the biggest attack on a European state since World War Two. Families cowered in shelters as Russian missiles bombarded Kyiv on Friday, and authorities asked residents to prepare Molotov drinks to defend the city.
In response to the invasion, U.S. President, Joe Biden announced a wave of sanctions against major currencies and banks, along with financial penalties against Russia.
The European Union, as well as the United States, Japan, Canada, and Australia, unveiled sanctions, including Germany’s move to halt certification of an $11 billion Russian gas pipeline.
Top buyers of Russian oil are having difficulties obtaining bank guarantees or locating ships, according to reports.
U.S. officials have however said that sanctions will not specifically target Russia’s oil and gas flows. In addition to producing crude oil, the country is a major natural gas supplier to Europe. The United States and other countries are working on a joint release of additional oil from their strategic reserves, Biden said.
In spite of Washington’s calls for a coordinated international stock release to help cool the market, traders and industry data indicate that China has increased its purchases of oil this year.
Sources within OPEC+ disclosed that a deal has not cracked yet, and despite crude topping $100 per barrel, they expect the group to maintain a planned output increase of 400,000 barrels a day in April.
Russia will be part of the alliance, which consists of oil exporters, as well as producers, including the Organization of Petroleum Exporting Countries.
