Peace negotiations between Ukraine and Russia are drawing out, resulting in rising oil prices. Yesterday's gains thus continue, reports Reuters.

A barrel of European reference oil Brent trades Friday morning for USD 108.49 against USD 107.13 Thursday afternoon. US benchmark crude West Texas Intermediate sells at the same time for USD 105.20 against USD 103.22.

Russian President Vladimir Putin is not showing signs of succumbing to tightened sanctions, and after four days of tele-talks between Moscow and Kyiv, the Kremlin has said that a peace accord has yet to be reached.

The small degree of progress noted in the talks is reflected in underlying market forecasts, although, after a week of falling prices, concerns are once again manifesting and have sent oil prices soaring with percentual increases not seen a long time.

"I'm still expecting more volatility. There's a lot of uncertainty out there still," says Westpac Senior Economist Justin Smirk to the news agency.

Beyond the war in Ukraine and Western sanctions against Russia, the oil market is also being affected by ongoing nuclear accord negotiations with Iran, depleting oil inventories as well as a new wave a Covid-19 in China. Similarly, the market was also impacted by an oil rally right after US President Joe Biden called Putin a "war criminal".

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