The recovery reflects persistent concerns about an invasion of Ukraine that threatens to disrupt Russia’s vast energy supply at a time when global supply is already failing to keep pace with demand.
“People have come to their senses,” said Robert Yauger, vice president of energy futures at Mizuho Securities. “They were hoping for the best but there’s no evidence on the ground that downturn is a reality.”
US oil hit a seven-year high of $95.82 a barrel on Monday amid concerns between Russia and Ukraine. In recent trading, oil rose 2.7% to $94.57 a barrel. Brent crude, the global benchmark, rose 2.6 percent to $95.75 a barrel.
The US stock market also gave up some of its big gains from Tuesday, with the Dow Jones down 225 points, or 0.6%, and the Nasdaq losing 1%.
Jauger said Biden’s and NATO’s comments were renewing market concern about the conflict.
“Investors rightly believe the president of the largest democracy on earth and the largest military alliance in the world, rather than the president of a dictatorship,” said Yuger.
Natural gas is also rising sharply, with futures jumping nearly 7% to $4.60 per million British thermal units.
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