Oil rates increase driven by dwindling supplies, escalating geopolitical tension
Date
3/25/2024 7:02:08 AM
(MENAFN) On Monday, oil rates saw an increase following three consecutive days of decline, fueled by dwindling supplies, attributed to mounting geopolitical tensions in the Middle East and the escalating conflict between Russia and Ukraine.
Brent, the benchmark for approximately two-thirds of the world's oil, rose by 0.61 percent to USD85.95 per barrel at 9:46 AM UAE time.
Meanwhile, West Texas Intermediate (WTI), the indicator that monitors US crude, saw a gain of 0.69 percent, reaching USD81.19 per barrel.
“Escalating geopolitical tension, coupled with a rise in attacks on energy facilities in Russia and Ukraine, alongside receding ceasefire hopes in the Middle East, raised concern over global oil supply,” a UK-based news agency quoted Hiroyuki Kikukawa, leader of Nissan Securities’ unit NS Trading, as declaring.
“Falling US rig count also increased worry over tighter supply.”
On Sunday, Russia launched a series of missile attacks targeting Ukraine's western region of Lviv. This aggressive action comes in the wake of recent strikes on Russian oil infrastructure, with several crude refineries being targeted by drone attacks in the past month alone.
The drone strikes carried out by Ukraine resulted in a fire at Rosneft's largest refinery on March 13th. Additionally, there have been strikes on two oil terminals, four oil and fuel depots, and 14 refineries throughout the course of this year.
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