- Oil prices soared after Western nations sprang more sanctions on Russia following the invasion of Ukraine
- Brent futures briefly touched $105/Bbl in early Monday morning trading
- There are fears that Russian oil flows could be disrupted
- Some customers have paused purchases of the country’s flagship Urals grade
- Western governments agreed over the weekend to exclude some Russian lenders from the SWIFT bank messaging system (Bloomberg)
- “Removing some Russian banks from SWIFT could result in a disruption of oil supplies as buyers and sellers try to figure out how to navigate the new rules,” And Lipow, president of Lipow Oil Associates
- AEGIS notes that oil prices are ultra-sensitive to the possibility of supply outages as global inventories remain extremely low
- Demand destruction is the only thing that can stop oil shooting higher after additional curbs were unleashed on Russia, according to Goldman Sachs Group (BBG)
- The bank raised its one-month forecast for Brent to $115/Bbl from $95, with significant upside risks on further escalation or longer disruption