Oil prices rose in Asian trading on Monday on concerns about shrinking global supplies caused by escalating conflicts in the Middle East and between Russia and Ukraine, while declining rig numbers in the United States also add to upward pressure.
Brent crude futures rose 52 cents, or 0.6%, to $85.95 a barrel at 03:59 GMT. WTI futures rose 55 cents, or 0.7%, to $81.18 a barrel.
Both indicators fell less than 1% last week compared to the previous week. The strengthening of the US dollar, which rose nearly 1% last week, has restrained prices.
Increasing geopolitical tension, increasing attacks on energy facilities in Russia and Ukraine, and diminishing hopes for a ceasefire in the Middle East have increased concerns about global oil supply.
Meanwhile, regarding the data from Baker Hughes, the number of oil rigs in the U.S. fell by one last week to 509 showing future supply may dwindle.
Moscow carried out its largest missile and drone attack, also targeting Ukraine’s energy system and the capital Kyiv.
The move follows Ukraine’s recent attacks on Russian oil infrastructure, in which at least seven refineries were targeted by drones.
Disruptions at oil refineries in Russia have increased pressure on fuel markets and led to increased demand for available crude oil cargoes. The attacks affected approximately 12% of Russia’s total oil processing capacity.
The sanctions clampdown initiated by the USA and G7 countries on Russian oil continues to grow. Russia’s major customers are cutting oil purchases, citing sanctions threats.
The attitude of Indian refiners, who refused to buy Russian crude oil carried on Sovcomflot tankers due to US sanctions, also increased the contraction in the global market.
In the Middle East, Israeli forces surrounded two more Gaza hospitals on Sunday, preventing medical teams from working. Israel said it had captured 480 militants in ongoing clashes at Gaza’s main al-Shifa hospital.
Blinken told Netanyahu on Friday that Israel would risk global isolation if it attacked the Palestinian city of Rafah in the Gaza Strip.
In the Middle East, US forces engaged six Houthi drones over the southern Red Sea after the Houthis fired four anti-ship ballistic missiles at a Chinese oil tanker, US Central Command said on Saturday.
Meanwhile, Russia declared national mourning on Sunday after at least 137 people died and more than 140 people were injured in an attack on a concert hall in Moscow.
