Oil rises on supply worries, U.S. summer demand hopes
Timilehin Adejumobi
1 min read
Oil prices edged higher on Tuesday, spurred by worries about political instability in Russia and possible supply disruptions, as well as U.S. demand hopes ahead of the summer driving season.
By 0041 GMT, Brent crude futures had climbed 37 cents to $74.55 a barrel, while U.S. West Texas Intermediate (WTI) futures rose 42 cents to $69.79 a barrel. On Monday, Brent had climbed 0.5% and the WTI 0.3%.
A clash between Moscow and Russian mercenary group Wagner was averted on Saturday after the heavily armed mercenaries withdrew from the southern city of Rostov under a deal that halted their rapid advance on the capital.
Following the weekend’s events, ANZ analysts said, the complacency among traders about Russian oil continuing to seep into the international market could no longer be assumed to the same extent.
“This is likely to lead to a risk premium being applied to the oil price amid the risk of further civil unrest,” they added in a note.
The challenge has fed questions about President Vladimir Putin’s grip on power and some concern about possible disruption of Russian oil supply, although loadings have kept on schedule.
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