WTI Futures Price Rises Up to 1.6% Intraday...Foreign Media "May Rise to $120 per Barrel"
Henry Hub Gas Price Surges 15.78%...US Decides to Deploy Additional 3,000 Troops to Eastern Europe
[Asia Economy reporters Byunghee Park and Hyunwoo Lee] As tensions between the West and Russia over Ukraine continue to escalate, international oil and natural gas prices are on the rise.
On the 2nd (local time), West Texas Intermediate (WTI) crude oil futures on the New York Mercantile Exchange (NYMEX) closed at $88.26 per barrel, up $0.06 from the previous trading day. Although it closed slightly higher, intraday prices surged as much as 1.6% to reach $89.72 per barrel. WTI prices rose 55% last year and surged 17.2% last month, marking the largest monthly increase since May 2020.
On the same day, the Henry Hub natural gas price, a key North American benchmark, jumped 15.78% from the previous session to $5.50 per MMbtu (one million British thermal units). This represents a 44.3% increase compared to the beginning of the year ($3.81).
The heightened tensions surrounding Ukraine have raised concerns that Russia’s oil and gas supplies could be disrupted, fueling supply and demand instability.
The United States announced on the same day that it would deploy an additional 3,000 troops to Eastern Europe in preparation for a possible Russian invasion of Ukraine. John Kirby, spokesperson for the U.S. Department of Defense, officially announced during a morning briefing that U.S. forces would be additionally deployed to Romania and Poland, NATO member countries in Eastern Europe.
The decision by the Organization of the Petroleum Exporting Countries (OPEC) and the OPEC+ coalition, which includes major non-OPEC oil-producing countries such as Russia, to maintain a gradual production increase policy at their March meeting, along with seasonal factors such as the U.S. cold wave, also contributed to the rise in energy prices.
According to Bloomberg News, Natasha Cernyver, global head of commodities research at JPMorgan Chase, stated that if geopolitical tensions surrounding Ukraine intensify, international oil prices could rise to as high as $120 per barrel.
Natural gas prices are also expected to rise further. On the same day, Bloomberg News reported, citing U.S. government sources, that the U.S. government discussed European gas supply issues with major Asian U.S. natural gas importers such as South Korea, China, Japan, and India in preparation for the outbreak of the Ukraine crisis.
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