By Gina Lee

Investing.com – Oil was up on Friday morning in Asia, extending its rally at the end of a third volatile week. There was little chance that ceasefire talks between Russia and Ukraine would progress, raising concerns about tighter sanctions and the disruption of oil supplies.

After climbing almost 9% on Thursday, the stock market rose 2.65% to $109.47 at 11:58 ET (3:58 GMT) – making it the biggest percentage increase since mid 2020. After a 8% increase in the previous day, it rose 2.86% to 105.33. After trading within a $16 range, Brent and WTI futures are expected to close the week with a 4% drop. Also, the black liquid fell from its 14-year peak of nearly two weeks back.

Russian President on Thursday warned “traitors and scum” at home who helped the West that they would be spat out like gnats, which added to concerns that the conflict stemming from Russia’s invasion of Ukraine on Feb. 24 will drag on.

Analysts believe that Putin’s remarks, along with comments by a Russian spokesperson claiming that a report on major progress in peace negotiations was wrong, and U.S. President Joe Biden calling Putin “a war criminal” all drove an influx of buyers Thursday.

“I expect more volatility. Justin Smirk (Westpac Senior Economist) told Reuters there’s still a lot uncertainty.

Analysts and bankers say that volatility in the market has scared off players. This could lead to price swings.

Western sanctions on Russia, alongside stalled talks to revive a 2015 nuclear deal with Iran, falling oil stockpiles, and the latest COVID-19 outbreak in China are all adding to the market’s volatility.

Smirk said, “In such tight markets and such an inliquid paper market you’re going get some volatility.”