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HomeNewsOil prices skyrocket: Russia Ukraine peace talks at ‘dead end’ leaves market...

Oil prices skyrocket: Russia Ukraine peace talks at ‘dead end’ leaves market in tight spot

Russian President Vladimir Putin on Tuesday blamed Ukraine for derailing peace talks, and said Moscow would not let up on what it calls a “special operation” to disarm its western neighbour. Russian President Vladimir Putin said peace talks with Ukraine are “at a dead end”, while suggesting the seven-week offensive is going to plan.

ANZ oil analysts said in a note: “This raises the spectre of continued risk of supply disruptions in the oil market.”

According to reports, Vitol Group intends to completely stop trading Russia-origin crude and products by the end of this year.

Volumes of Russian oil handled by Vitol “will diminish significantly in the second quarter as current term contractual obligations decline,” a spokesperson said by email.

It intends to cease trading crude and products unless directed otherwise, and “we anticipate this will be completed by the end of 2022”.

The Geneva-based firm reiterated that it will not enter into any new Russian crude and product transactions.

The company has stressed since Russia’s invasion of Ukraine that its purchases have been part of pre-existing contracts.

Vitol’s announcement came after an adviser to Ukrainian President Volodymyr Zelensky wrote to the heads of Vitol and other merchant traders, asking them to terminate business dealings with Russia’s fossil fuel industry to cut off the cash flow helping to finance the invasion.

Companies across the world have come under increased pressure from governments and shareholders to sideline Moscow.

READ MORE: Russian troop ‘raped baby in sick video’

Oil majors BP Plc, Shell Plc and Exxon Mobil Corp. have announced plans to abandon their stakes in investments related to Russia as they take steps to halt dealings with the nation.

Meanwhile, the data shows that Brent crude futures rose 59 cents, or 0.6percent, to $105.23 a barrel at 0053 GMT, while US West Texas Intermediate (WTI) crude futures jumped 60 cents, or 0.6percent, to $101.20 a barrel.

Both contracts surged more than 6 percent in the previous session.

The latest data showed Russian oil and gas condensate production dropped below 10 million bpd on Monday, its lowest level since July 2020, as sanctions imposed by many countries after Russia invaded Ukraine and logistical constraints hamper trade, people familiar with the data said on Tuesday.

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