Oil becomes more expensive in the face of the threat of Russia's attack on Ukraine

Futures contracts for WTI oil Today they are growing by more than 1%, exceeding the level of USD 94 per barrel. As a result, the highest level in more than seven years has been reached again.

The oil price hike began after the United States warned of Russia's possible invasion of Ukraine any day, potentially triggering sanctions against Russia. This may cause disruptions in the supply of energy resources.

This is happening in the environment when OPEC + struggles to achieve its production goals despite monthly promises to increase production by 400. barrels per day through March. IEA agency reported a shortage of production OPEC + in relation to the target, it increased in January to 900 thousand. barrels a day.

Instead of an increase in supply, a decline may come out

Investors continued to monitor developments regarding a possible revival of the 2015 nuclear deal in Iran, but a high-ranking Iranian security official said Monday progress was becoming increasingly difficult.

As a result, the Iranian oil may not flow to the market, and the Russian oil may also be less if the conflict worsens. Thus, the supply may not even increase, but even decrease. This seems to be leading to a supply-demand imbalance that seems to be currently discounting the price of oil in world markets.