The impact of the Ukraine crisis can be seen in the market movements this week, as uncertainty has pushed prices to hover around $100 a barrel.

Oil prices are approaching the $100 per barrel mark due to fears of supply disruption as the Russia-Ukraine crisis continues. 

The conclusion of Russia’s military drill near Ukraine’s border eased the tension pushing back Brent prices but the situation remains uncertain. 

Strongly supported by supply tightness and geopolitical developments caused by changing dynamics, Brent Crude oil remained above $90 per barrel.

Even though in their latest meeting, OPEC+ ministers agreed to maintain the planned monthly increase of 400,000 barrels per day in March, prices remained firm while crude prices continued their backwardation.

At this early stage in the first quarter of 2022, the oil market outlook remains tight and prices are still recording high levels despite the general agreement that surplus will eventually develop.

Crude prices have risen, buoyed by the expectation of stronger near-term oil market fundamentals. A declining US dollar value and a rise in speculative net length added support. 

Crude oil prices traded above $80 per barrel for the first time since last November, largely supported by easing concerns over the negative impact of the omicron COVID-19 variant and signs of robust oil demand in major oil-consuming countries. But will this level remain throughout the year?

The year 2021 witnessed an upward shift in the price of oil globally, reversing the falls of previous years.

2021 was a good year for all and the OPEC+ managed markets well to maintain a balance and oil inventories low.