Oil Prices Climb over Global Supply Concerns
Oil prices climbed in the global commodity market due to supply concerns prompted by ongoing conflicts in the Middle East and the Ukraine-Russia war.
ICE Brent crude traded at $85.77 per barrel, up by 0.60% from the closing price of $85.26 per barrel in the previous trading session.
The American benchmark, West Texas Intermediate (WTI) traded at $82.27 per barrel at the same time, a 0.64% rise from the previous session that closed at $81.74 per barrel.
According to media reports, Israel has been attacking the Gaza Strip since Oct. 7 and continues to clash with Lebanon’s Hezbollah on its northern border.
These tensions support prices upward by raising concerns that the ongoing tension in the region, where most of the global oil reserves are located, may lead to disruptions in global supply.
In addition, as the Russia-Ukraine war leaves its second year behind, the ongoing tensions in the region continue to increase supply concerns in the market.
It is reported that the town of Selydove near the front line of Pokrovsk in the Donetsk region of Ukraine was hit today by FAB-500 Russian guided missiles, 6 people were injured as a result of the attack.
The possibility that a retaliatory attack from Ukraine on Russia, which accounts for about 8% of the global supply, will target the country’s crude oil and refined products and reduce Russia’s export capacity, fuels supply concerns and contributes to the rise in prices.
Crude oil prices rose yesterday due to Israel-Lebanon tensions despite soft U.S. demand. Brent crude oil prices increased by 0.81% to $85.91, while WTI increased by 0.64% to $81.41. Both later retreated amidst seesaw price movement in the global commodity market. Gold prices also rose by 1.08% to $2,338.20 per ounce. Nigeria, U.S Firm Sign MoU on Human Space Flight
