Oil Soars Past $110 Per Barrel Over Supply Fears As Russia Batters Ukraine And Biden Threatens Further Sanctions

Oil prices kept surging on Wednesday (March 2) and topped $110 per barrel as Russia's war continues against Ukraine and U.S president Joe Biden promising further punitive action.

Brent oil rose as high as $112.84 per barrel in early European trade and was $112.66 per barrel at 0800 GMT, still 7.33% up on Tuesday’s closing price of $104.97 per barrel.

Russia's invasion of Ukraine has caused prices to soar for oil and other commodities where the region is a major producer.

Oil prices rose despite an agreement by the United States and other major governments in the International Energy Agency to release 60 million barrels from strategic reserves to boost supplies.

"Markets dismissed the notion that 60 million barrels of strategic reserves released will be consequential to the risks of Russian supply jeopardized," said Tan of Mizuho. "Russia pumps more than that in just six days." A more impactful announcement may come later Wednesday, as the leaders of OPEC and other major oil-producing countries decide whether to increase their own production by 400,000 barrels per day in April.

With prices showing no signs of easing, focus now shifts to today's Opec+ meeting where the producing cartel, that includes Russia, is set to discuss output policy.

(With inputs from PTI)