DOHA: Oil prices gained on Friday but retreated from session highs after US President Donald Trump threatened sanctions on Russia if it fails to reach a cease-fire with Ukraine. Brent crude futures settled at $70.36 a barrel, up 90 cents, or 1.3%. West Texas Intermediate futures finished at $67.04, up 68 cents, or 1.02%, noted Al-Attiyah Foundation in its Weekly Energy Market Review.
Trump said in a post on Truth Social that he was “strongly considering” sanctions on Russian banks and tariffs on Russian products because its armed forces continue attacks in Ukraine. In early trade, Brent jumped as high as $71.40, while WTI hit $68.22 after Russia’s Deputy Prime Minister Alexander Novak told reporters that the OPEC+ producer group will go ahead with its April increase but may then consider other steps, including reducing production.
OPEC+ had said it intended to proceed with a planned April output increase, adding 138,000 barrels per day to the market. Analysts said oil’s moves on OPEC+ and possible Russia sanctions swept aside other news, including delays in Israel and Hamas seeking a permanent cease-fire in Gaza. For the week, Brent and WTI finished down 3.9%.
Asian spot liquefied natural gas (LNG) prices were flat last week, holding at a ten-week low amid Europe’s bearish gas price sentiment, though some emerging spot demand has curbed losses. The average LNG price for April delivery into northeast Asia was at $13.50 per mmBtu, industry sources estimated.
Asian LNG prices are bearish, driven by anticipated declines in the Dutch TTF benchmark in Europe and stable Pacific supply, analysts said. Warmer weather forecasts in northeast Asia will likely curb gas-for-power demand in March, following accelerated inventory drawdowns by power utilities in February. Spot demand from Korean and Japanese importers, including Korea Gas Corp, JERA, Tokyo Gas and Osaka Gas, has recently emerged as buyers seek to replenish stocks after a cold winter.
In Europe, the Dutch TTF benchmark price was down at 12.31 per mmBtu. A key driver behind this fall is multi-strategic investment funds selling the TTF to de-risk as equities have fallen. Additionally, a European Commission proposal to retain gas storage requirements and targets for two more years but with added flexibility reduced pressure on summer injection demand.
