BLBG: Oil Rises as IEA Warns About Impact of Russian Gas Disruption
Crude oil rose as the International Energy Agency, an advisor to 28 nations, expressed concern about the first halt in Russian gas exports to Europe in three years.
OAO Gazprom, Russia’s gas-export monopoly, cut off all gas supplies to Europe through Ukraine at 7:44 a.m. Kiev time today, according to Ukrainian utility NAK Naftogaz Ukrainy. The IEA said it was “very concerned” about the disruption, which it described in a statement on its Web site as “completely unacceptable.’
Oil for February delivery on the New York Mercantile Exchange rose as much as 51 cents, or 1.1 percent, to $49.09 a barrel. It was at $48.77 at 12:40 p.m. Brent crude traded in London advanced as much as 87 cents, or 1.7 percent, to $51.40.
“The cold weather in Europe and the continuing interruption to gas supplies from Russia are both proving supportive for oil prices,” said Christopher Bellew, senior broker at Bache Commodities Ltd. in London . “The fact we have these supply issues in Europe while stockpiles are plentiful in the U.S. explains the stronger performance of Brent.”
