On Monday, 18 November, oil markets saw a rise in prices after Russia’s powerful air strike on Ukraine, which caused serious damage to the energy infrastructure. This was reported by Reuters.
- Brent crude oil prices rose by 0.4% to $71.33 per barrel.
- WTI crude oil futures rose by 0.3% to reach $67.20 per barrel.
Analysts say that a change in Washington’s policy, which allows Ukraine to use US weapons to attack Russian territory, could put additional strain on the market.
Expert commentary:
- MST Marquee’s Saul Kavonik noted that the impact on Russian oil exports remains limited for now. However, Ukraine’s attacks on Russia’s oil infrastructure could lead to a significant price increase.
- According to sources, three Russian oil refineries were forced to shut down due to export restrictions, rising borrowing costs, and oil prices.
Other influencing factors:
- Last week, Brent and WTI prices fell by more than 3% due to weak economic data from China.
- The International Energy Agency predicts that in 2025, global oil supply will exceed demand by more than 1 million barrels per day.
The number of active oil rigs in the US fell to 478, the lowest level since July.
Geopolitical tensions between Ukraine and Russia could have a significant impact on the stability of oil markets. A blow to Russia’s energy infrastructure could lead to further price increases, while global oversupply remains a long-term risk for the industry.
