Oil prices rose sharply on Monday as tensions between Ukraine and Russia escalated, sending crude oil surging 3.2% above $69 per barrel. The US greenlit Ukraine’s use of long-range missiles against Russian targets, amplifying fears of a wider conflict.
Traders’ bullish bets on rising prices also contributed to the surge, with speculators selling short-term contracts and buying longer-dated futures ahead of their expiration. Analysts say the price increase is partly driven by concerns about potential sanctions on Iran and reduced oil production in Kazakhstan.
The market’s optimism was boosted by reports that Chevron-led Tengiz venture cut daily oil production by 30% this month amid maintenance. Additionally, a dearth of expected inventory builds in recent US government data further supported prices.
However, the strong dollar has put pressure on crude prices, which have swung between gains and losses in recent weeks due to concerns over supply disruptions in the Middle East. With tensions on the rise, oil prices are likely to remain volatile.
Source: https://finance.yahoo.com/news/oil-holds-weekly-loss-glut-233102337.html