Oil Prices Rise 6% On Worries About Russian Energy Supply

After two days of sharp losses, oil prices rose sharply Wednesday (Thursday, May 12, 2022, in Manila) on renewed concerns about the flow of energy from Russia, Matt Egan reported for CNN.

Photo Insert: The rebound comes amid continued uncertainty over the supply of Russian energy to Europe.

US oil jumped 6.3% to $105.97 a barrel in recent trading. Brent crude, the world benchmark, gained 5.2% to $107.75 a barrel. The rebound comes amid continued uncertainty over the supply of Russian energy to Europe.

Not only is the European Union (EU) debating an embargo on Russian oil, but Ukraine suspended the flow of some Russian natural gas to Europe. The Ukrainian gas transmission system operator blamed “interference by the occupying forces.”

“The ante has been upped. Markets are skittish,” said Matt Smith, lead oil analyst for the Americas at data and analytics firm Kpler.

US oil fell 9% over the prior two days, finishing Tuesday at $99.76 a barrel. The volatility comes as prices at the pump continue to march higher, contributing to high inflation gripping the US economy.

Gas prices hit $4.40 a gallon on Wednesday for the first time ever, up three cents in one day, according to the American Automotive Association (AAA.) The fresh record leaves the national average up 17 cents in just the past week and well above the March peak of $4.33.

WEEKLY FEATURE : MVP Group Keeps Lights On During Pandemic