“Oil prices edged higher on Monday after the escalation of hostilities between Russia and Ukraine over the weekend, but were weighed down by concerns about fuel demand in China.”, — write: www.epravda.com.ua
Oil prices rose on Monday after hostilities between Russia and Ukraine escalated over the weekend, but were weighed down by concerns about fuel demand in China.
This is reported by the Reuters agency.
Brent crude oil futures rose 29 cents (0.4%) to $71.33 per barrel. WTI (West Texas Intermediate) crude futures in the US rose by 18 cents (0.3%) to $67.20 per barrel.
On Sunday, Russia carried out the largest airstrike in Ukraine in the past three months, causing significant damage to the country’s energy system.
In a major U.S. policy shift toward the Ukraine-Russia war, U.S. President Joe Biden’s administration has authorized Ukraine to use U.S. weapons to strike deep into Russian territory.
The Kremlin has not yet reacted to the news, but previously warned that loosening restrictions on Ukraine’s use of American weapons would be seen as a serious escalation.
“Biden’s decision to allow Ukraine to strike Russian forces near Kursk with long-range missiles could lead to an increase in geopolitical tensions in the oil markets, an escalation in response to North Korean military involvement in the conflict,” IG Markets analyst Tony Sycamore noted.
MST Marquee energy analyst Saul Kavonik noted: “So far, Russian oil exports have had little impact, but if Ukraine attacks more oil infrastructure, the market may react with higher prices.”
In Russia, at least three refineries have been forced to suspend processing or cut production due to heavy losses amid export restrictions, rising oil prices and high borrowing costs, five industry sources said.
Brent and WTI fell more than 3% last week amid weak economic data from China and a forecast by the International Energy Agency that global oil supply will exceed demand by more than 1 million barrels per day in 2025.
We will remind:
According to The New York Times, the current President of the United States, Joe Biden, for the first time allowed the Ukrainian military to use long-range ATACMS missiles to attack Russian territory.