Oil prices saw an uptick in early Asian trading on Monday due to worries about a tightening global supply, influenced by increasing conflicts in the Middle East and between Russia and Ukraine, Reuters reported.
Additionally, a decrease in the US rig count has contributed to concerns over supply scarcity. Brent crude futures rose by $0.24, reaching $85.67 a barrel, while US crude futures increased by $0.25 to $80.88 per barrel, with both benchmarks showing less than a 1 per cent change from the previous week.
Geopolitical tensions have escalated following attacks on energy facilities in Russia and Ukraine and diminishing hopes for peace in the Middle East.
Russia’s recent missile strikes on Ukraine’s infrastructure, including 57 missiles and drones targeting Kyiv, have intensified these concerns.
This follows Ukraine’s targeting of at least seven Russian oil refineries with drones this month and Israel’s recent military actions, leading to heightened tensions in the region.
The US oil rig count, a predictor of future supply levels, has decreased by one to 509, according to Baker Hughes data, signaling potential supply constraints ahead. The market remains attentive to these developments as they unfold.
