Oil prices rose amid supply concerns after hits in Russia
Kyiv • UNN
Oil prices rose sharply due to fears of disruptions in Russian oil supplies after hits on Russian territory. Expectations of lower interest rates in the US also positively affected global growth and fuel demand forecasts.
Oil prices rose sharply on Monday amid growing fears of possible disruptions to Russian oil supplies after hits on Russian territory, while expectations of US interest rate cuts positively affected global growth and fuel demand forecasts, Reuters reports, writes UNN.
Details
Brent crude futures rose 3 cents, or 0.04%, to $67.76 at 03:42 GMT (06:42 Kyiv time), while West Texas Intermediate (WTI) crude futures rose 7 cents, or 0.11%, to $63.73.
After the hits in Russia, a large-scale fire broke out at the export fuel terminal in Ust-Luga, Russian officials reported. In addition, a fire at the Russian Novoshakhtinsk refinery due to a drone attack has been ongoing for the fourth day, said the acting governor of the Russian region. The refinery mainly sells fuel for export and has an annual capacity of 5 million tons of oil, or about 100,000 barrels per day.
"Given Ukraine's success in attacking Russian oil infrastructure... the risks for crude oil are shifting to higher levels," said IG Market analyst Tony Sycamore.
Meanwhile, US Vice President JD Vance said on Sunday that Russia had made "significant concessions" regarding a peaceful settlement of Russia's war against Ukraine.
"They acknowledged that they would not be able to establish a puppet regime in Kyiv. That, of course, was one of the main demands from the very beginning. And, importantly, they acknowledged that certain security guarantees for Ukraine's territorial integrity would be provided," Vance said on NBC.
However, US President Donald Trump on Friday again threatened to impose sanctions on Russia if no progress is made in a peaceful settlement of the situation in Ukraine within two weeks.
Investor risk appetite increased after US Federal Reserve Chairman Jerome Powell hinted on Friday at a possible interest rate cut at the US central bank's meeting next month.
"The mood of risk-averse investors across all markets has boosted investor interest in commodities, fueled by renewed supply problems in energy and metals," ANZ analysts note.