By Gina Lee

Investing.com – Oil was up on Wednesday morning in Asia as sanction effects on Russian banks took hold and traders avoided Russian supplies following Moscow’s invasion of Ukraine.

The price of gold rose by 2.84%, to $110.27 at 9:34 ET (23:34 GMT), and then jumped 5.08% up to $108.66. These levels are unprecedented since July 2014.

The American Petroleum Institute released Tuesday’s crude oil supply data for the United States. It showed that U.S. crude stocks fell by 6.1 Million barrels in the week ending February 25, as compared to the 6 million barrels API reported for the prior week. Analysts expected a rise of around 2.8 barrels.

Last week’s decline in gasoline inventories was 2.5 million barrels. Distillate stocks rose by 400,000 barrels.

Investors await U.S. crude oils supply data from U.S. Energy Information Administration. These are due late in the day. Reuters polled analysts expecting a crude oil inventory increase of 2.7 millions barrels.

Justin Smirk of Westpac noted that trade disruptions are beginning to grab people’s interest.

Trade finance and insurance issues are all impacting Black Sea exports. “The supply shocks have begun,” he stated.

Russian oil exports make up approximately 8% of the world’s supply.

While Western powers do not directly impose sanctions on energy exports, U.S. trader hubs in New York City and the U.S. Gulf have made it clear that they are refusing to import Russian crude.

Russian barrels have not been touched by the public. Although you may be able to see them on the surface, they were purchased before the invasion. According to Reuters, there won’t be many after that,” a New York Harbor trader said.

On Tuesday, members of the International Energy Agency agreed to a coordinated oil release in order to limit market gains. However, it was criticized by observers as a temporary solution to the shortage.

Smirk stated that while they helped limit price rises, if you are looking to reverse them, there is something better.

The IEA reports that commercial oil stockpiles have fallen to their lowest point since 2014.

Russia, the Organization of the Petroleum Exporting Countries and their allies will be meeting on Wednesday to discuss how they can continue to expand the supply of 400,000 barrels daily.