Crude oil prices have risen to $115 U.S. per barrel in volatile trading as traders assess tight supplies and the prospects of a new deal with Iran.
Brent crude futures, the international benchmark, were at $121.45 U.S. a barrel in European trading. U.S. West Texas Intermediate (WTI) crude futures reached $115.00 U.S. a barrel.
Both contracts have posted big gains this week, with Brent futures up more than $14 a barrel, or 13%, since Monday and WTI climbing over $10 a barrel, or 10%, as worries over supply disruptions intensified following Russia's invasion of Ukraine.
Oil markets jumped more than 5% following reports that crude exports from Kazakhstan's Caspian Pipeline Consortium (CPC) terminal had completely halted following storm damage. Russia's deputy prime minister said oil supplies could be stopped for two months.
U.S. President Biden is meeting with NATO allies on Thursday and is expected to announce additional sanctions on Russia over its actions in Ukraine, which Moscow calls a "special operation".
Meanwhile, stockpiles in the U.S. fell by 2.5 million barrels last week while inventories from the U.S. Strategic Petroleum Reserve declined by 4.2 million barrels, according to data from the U.S. Energy Information Administration.
U.S. oil production remained flat at 11.6 million barrels per day, according to EIA data.
Separately, White House national security adviser Jake Sullivan said the U.S. and its allies have made progress in Iran nuclear talks but issues remain.
Iran is already preparing for a ramp-up in energy exports, and the state refiner NIOC has reportedly started to reach out to former key customers in India and South Korea.
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