Latest Trending
Last Updated, Jan 25, 2022, 1:38 AM
Oil prices rise on supply disruption jitters as geopolitical tensions grow
Share This


Article content

TOKYO — Oil prices climbed on Tuesday, regaining some of the ground lost in the previous day’s sharp losses, on concerns over possible supply disruptions amid rising geopolitical tensions in both Eastern Europe and the Middle East.

Brent crude futures rose 48 cents, or 0.6%, to $86.75 a barrel at 0116 GMT, reversing a 1.8% fall in the previous session.

U.S. West Texas Intermediate (WTI) crude futures climbed 34 cents, or 0.4%, to $83.65 a barrel, having slid 2.2% on Monday.

Oil prices reached seven-year highs last week, bolstered by tight worldwide supply and resurgent global demand.

Advertisement

Article content

“The market tone stays strong, supported by heightening geopolitical risk,” said Chiyoki Chen, chief analyst at Sunward Trading.

“We saw profit-taking on Monday when the prices moved higher and as Wall Street temporarily sank amid concerns over the U.S. Federal Reserve’s policy to reduce economic stimulus, but buying appetite for oil remained solid,” he said.

A tumultuous day on Wall Street saw stocks end higher after posting heavy losses earlier in the day, as uncertainty over the rising geopolitical tensions and Fed policy boosted safe havens.

NATO said on Monday it was putting forces on standby and reinforcing eastern Europe with more ships and fighter jets, in what Russia denounced as Western “hysteria” in response to its build-up of troops on the Ukraine border.

Advertisement

Article content

In the Middle East, Yemen’s Houthi movement, aligned with Iran, launched a missile attack at the United Arab Emirates on Monday that targeted a base hosting the U.S. military, but was thwarted by U.S.-built Patriot interceptors, U.S. and Emirati officials said.

Meanwhile, lower U.S. oil inventories are also providing support, with crude inventories around the NYMEX WTI delivery point at Cushing in Oklahoma at the lowest for the time of year since 2012.

Portfolio investors added to their bullish positions in oil for the fifth week running, as the worst of the latest wave of coronavirus infections passed and governments began to lift restrictions on business and travel. (Reporting by Yuka Obayashi; Editing by Kenneth Maxwell)

Advertisement

Comments

Postmedia is committed to maintaining a lively but civil forum for discussion and encourage all readers to share their views on our articles. Comments may take up to an hour for moderation before appearing on the site. We ask you to keep your comments relevant and respectful. We have enabled email notifications—you will now receive an email if you receive a reply to your comment, there is an update to a comment thread you follow or if a user you follow comments. Visit our Community Guidelines for more information and details on how to adjust your email settings.

24World Media does not take any responsibility of the information you see on this page. The content this page contains is from independent third-party content provider. If you have any concerns regarding the content, please free to write us here: contact@24worldmedia.com

Latest Post

4 Advantages of Owning Your Own Dump Truck

Last Updated,Oct 4, 2024

5 Characteristics of Truth and Consequences in NM

Last Updated,Sep 30, 2024

How To Make Your Wedding More Accessible

Last Updated,Sep 11, 2024

Ensure Large-Format Printing Success With These Tips

Last Updated,Sep 11, 2024

4 Reasons To Consider an Artificial Lawn

Last Updated,Sep 11, 2024

The Importance of Industrial Bearings in Manufacturing

Last Updated,Sep 11, 2024

5 Tips for Getting Your First Product Out the Door

Last Updated,Sep 11, 2024

Most Popular Metal Alloys for Industrial Applications

Last Updated,Sep 6, 2024

5 Errors To Avoid in Your Pharmaceutical Clinical Trial

Last Updated,Aug 20, 2024

Ways You Can Make Your Mining Operation Cleaner

Last Updated,Aug 12, 2024

Tips for Starting a New Part of Your Life

Last Updated,Jul 16, 2024

Easy Ways To Beautify Your Home’s Exterior

Last Updated,Jun 18, 2024