Crude prices rose sharply on Wednesday, as hopes for a diplomatic solution in Ukraine, fueled by yesterday’s statements by negotiators in Kiev and Moscow, faded again before 24 hours had elapsed.
It is recalled that after yesterday’s talks between Russia and Ukraine in Istanbul, there was talk of progress in the negotiations that could lead to an escalation of the war, with Moscow committing itself to drastically limiting its military operations on the outskirts of the Ukrainian capital and other country and to focus its activities in Donbas.
There was even talk of a possible meeting between the presidents of Russia and Ukraine, Vladimir Putin and Volodymyr Zelensky, which allayed fears of energy supply problems over possible new sanctions against Russia.
However, the climate changed again on Wednesday, when Kremlin spokesman Dmitry Peshkov said the Istanbul meeting had made no “progress” in the negotiations or “promising” anything.
The doubts expressed by Western officials about Russia’s intention to escalate its attacks on Ukraine were further reinforced by the fact that Russian troops continued to bombard Kiev and other Ukrainian cities, prompting US officials to support area of the Ukrainian capital do not constitute a retreat but an attempt to reorganize the Russian army.
Chechen leader Ramzan Kadyrov confirmed the allegations on Wednesday, saying Moscow would not make any concessions in the war in Ukraine and that Kremlin negotiator Vladimir Medinsky had done the wrong thing. Reuters.
In a videotaped statement to the Telegram app, which appeared to deviate sharply from Russia’s official position, Kadyrov said that Russian President Vladimir Putin would not simply stop what he started in Ukraine.
The latest developments have revived fears of possible energy shortages, leading to rising crude prices.
Thus, West Texas Intermediate crude for May delivery closed the day at $ 3.44, or 3.3% higher, closing at $ 107.68 a barrel.
Brent crude for May delivery was up $ 3.52, or 3.2%, at $ 113.75 a barrel.
New jump for gas amid tensions for rubles
Meanwhile, a new jump was recorded on Wednesday and gas prices echoed Moscow’s decision to require contract payments to be made in rubles, with the rise partially easing after the Kremlin said the transition to payments in rubles will not be made immediately but gradually.
In particular, the price of the contract in Amsterdam (TTF) rose 8.87% to 118 euros per megawatt hour, having climbed earlier above 123 euros, from the area of 100 euros that had fallen last week.
Germany warned today that it could lead to a gas emergency, a measure designed to counter a possible cut-off of gas supplies from Russia.
Germany and Austria then launched an emergency plan for a gas shortage, while the Netherlands is on hold, with European leaders saying in Moscow that its request could not be accepted.
Source: Capital
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