Oil keeps rising even as US mulls strategic reserves release – The Peninsula

Oil keeps rising even as US mulls strategic reserves release – The Peninsula

Oil pushed higher as investors tried to figure out whether a possible release of strategic crude reserves by the U.S. and its allies could do much to curb a dramatic surge in prices following Russia’s invasion of Ukraine.

Futures in New York rose almost 2% in Asia after advancing 4.5% on Monday as sanctions on Russia rippled through the market. A release of 60 million barrels is being considered by the U.S. and others, according to people familiar, which would be equivalent to less than six days of Russian output. The International Energy Agency, meanwhile, will hold an extraordinary ministerial meeting on Tuesday, Executive Director Fatih Birol said on Twitter.

The American oil benchmark has whipsawed around $100 a barrel since the invasion last week as the market digested the impact of mounting financial penalties against Russia. Brent in London rallied above $105 at one point, with Goldman Sachs Group Inc. saying demand destruction is the only thing that can stop oil shooting even higher. The bank has raised it’s one-month forecast for the global crude benchmark to $115 with significant upside risk.

The invasion of Ukraine has upended commodity markets from oil to gas and wheat, increasing inflationary pressure on governments seeking