West Texas Intermediate futures in New York traded above $106 after settling at $103.41 a barrel on Tuesday. The International Energy Agency agreed to deploy 60 million barrels from stockpiles around the world, which amounts to less than six days of Russian output. Financial sanctions against Russia continue to mount, raising the specter of a major global supply disruption.
The invasion of Ukraine has upended commodity markets from oil to natural gas and wheat, piling inflationary pressure on governments. Commodity prices soared the most since 2009, with the Bloomberg Commodity Spot Index, which tracks 23 futures contracts, climbing 4.1% on Tuesday.
“We are quite afraid that we are going to lose supply from Russia,” said Bart Melek, head of commodity strategy at TD Securities. “The release from strategic reserves does not seem to be enough.”