(Bloomberg) -- Oil rallied as traders analyzed the impact of sanctions on Russia and a widening gap between futures in New York and London.
West Texas Intermediate oil jumped as much as 2.9% to extend its weekly gain. While U.S. President Joe Biden said that energy supplies would be omitted from sanctions for the time being, penalties on Russia’s five major banks and a stifling of the money that lubricates international trade threaten international supply.
Crude on Thursday soared to breach the $100 a barrel level, before paring gains after Biden said the U.S. is working with major consuming nations to coordinate a collective release from strategic petroleum reserves. Meanwhile, the discount of the U.S. grade to international benchmark Brent ballooned to its widest since April 2020, possibly leading traders to explore arbitrage opportunities.
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