Letters: Russia and the oil price rally
[Re: No sign of de-escalation as Russia still building forces on Ukraine border, February 17]
Hopes have begun to fade that Russia is pulling back troops in any meaningful manoeuvre casting fresh clouds over financial markets.
It has meant that the brief backtracking in the upwards sprint in the price of oil hasn’t lasted long.
The words of caution from NATO that there were no significant signs of de-escalation sent Brent crude tracking upwards 2.2 per cent back above $95.3 a barrel and WTI rising 1.5 per cent, at $93.21.
With global demand rising amid lower production the risk is that supply could become even tighter if sanctions are imposed on Russia.
Although higher fuel prices are the last cost many companies need right now, the resumption of the oil price rally is helping energy majors gain ground. Shell and BP climbed higher in afternoon trade, while Exxon Mobil and Chevron put in a robust performance in early trading in New York.
Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown