Crude prices remain elevated on intensifying Russia-Ukraine conflict

Global crude oil prices continue to remain elevated amid intensifying Russia-Ukraine conflict. Amid reports of "ceasefire violation" by Russia and no sign of easing tensions, analysts expect the prices to maintain the upward trajectory. 

Russia had declared a limited ceasefire to allow evacuation of civilians from two Ukrainian cities on Saturday, but the ceasefire fell apart, according to Ukrainian authorities.

Further, International Energy Agency's (IEA's) announcement on late on Friday evening that its member countries will release 61.7 million barrels of oil, higher than the initial commitment of 60 million barrel, also is unlikely to soothe to prices in the coming week. IEA member countries unanimously agreed on 1 March for an initial emergency response plan to alleviate the increasing tightness in oil markets resulting from Russia's invasion of Ukraine.

A recent report by Kotak Institutional Equities said that the IEA's announced release may not be sufficient to offset an impact to Russian exports.

The April futures contract of Brent crude on the Intercontinental Exchange rose nearly 7% on Friday to $118.11 per barrel, from its previous close. Similarly, the West Texas Intermediate (WTI) crude was up 7.44% at $115.68 per barrel.

The incessant rise in global crude prices have lifted the Indian energy basket, comprising of Oman, Dubai and Brent crude. It was last recorded at $117.39 per barrel on 3 March, according to data from the Petroleum Planning & Analysis Cell of the Ministry of Petroleum and Natural Gas.