Crude oil futures closed significantly higher on Friday as fears of supply shortage outweighed concerns about a slowdown in global economic growth. Worries about supply in global oil markets have increased following a reduction in flows of Russian refined products such as diesel, fuel oil and naptha. Gasoline prices soared to record highs, contributing significantly to the sharp jump in crude oil prices. Following Russia's move to impose sanctions on more than 30 EU, US and Singaporean energy companies, the necessity to secure alternative gas supplies has now become the top priority.
Benchmark crude oil futures for June delivery surged $4.36 or 4.1% percent to settle at $110.49 a barrel on the New York Mercantile Exchange. Brent crude for July delivery rose $4.03 or 3.75 percent to settle at $111.48 (Provisional) a barrel on London's Intercontinental Exchange.