Oil prices up 4% on escalating conflict in Ukraine - Reuters
Kyiv • UNN
Oil prices posted their biggest weekly rise in two months due to the escalating conflict in Ukraine. Brent reached $74.14 per barrel and WTI reached $70.07 amid rising geopolitical tensions.
On Friday, oil prices posted their biggest weekly rise in almost two months, up 4%. The reason was the escalation of the war in Ukraine, which again added a geopolitical risk premium to the market. UNN writes about this with reference to Reuters.
Details
By 14:18 GMT, Brent crude oil futures fell 9 cents to reach $74.14 per barrel, while West Texas Intermediate futures fell 3 cents to $70.07 per barrel.
The pressure on prices intensified due to an unexpected deterioration in business activity in the euro area. The service sector contracted and industry entered recession.
Kazakhstan's Tengiz field, the country's largest, is set to return to full production in early December. The Kazakh Energy Ministry also announced that it plans to produce 90 million tons of oil in 2025, up from 88 million tons in 2024.
Despite this, oil prices rose by almost 4% over the week. The reason for this was the escalation of the war in Ukraine: Moscow stepped up its actions after the UK and the US allowed Ukraine to launch missile strikes on Russian territory.
Saxo Bank analyst Ole Hansen noted that the escalation of the conflict has raised geopolitical tensions to a higher level than during the conflict between Israel and Iranian groups. He also added that rising demand for fuel due to colder weather and higher refinery margins contributed to this week's price increase.
The market fears accidental disruptions in any part of the oil, gas and refining industry, which not only cause long-term damage but also accelerate the military spiral
Supporting prices this week, China announced on Thursday policy measures to stimulate trade, including support for energy imports, amid concerns about US President-elect Donald Trump's threats to impose tariffs.
According to analysts, traders and ship tracking data, crude oil imports to China will resume in November.
Recall
Rising geopolitical tensions caused by the escalation of the war in Ukraine have had a significant impact on financial markets. Gold posted its strongest weekly gain in 13 months, investors sought safe-haven assets, and oil and gas prices hit new highs.
