Brent crude on the rise

News: Brent crude oil has crossed US$120 per barrel amid a tight supply and demand scenario. Russian and Kazakhstan oil exports via Caspian Pipeline Consortium (CPC) may get lowered by 1 million barrel per day (1% of global supply) due to storm damaged berths (repair could take two months).

Views: US crude inventories fell by 4.3 million barrels for the week ended March 18 (vs. analysts’ estimate of a rise of 1 million barrels). The US President is expected to announce more sanctions on Russia in its meeting with European leaders on Thurday. Russia has also announced it will sell its gas to unfriendly nations in rubel instead of US dollars.

Impact: Neutral