Different barrels of crude oil rose more than 1% amid the intensification of geopolitical conflicts.
The oil prices increased more than 1% this Tuesday, due to the escalation of tensions in Europe and Middle East, Since the wars in both regions they continue to represent a threat to global supply.
Crude oil futures Brent closed up $1.08, or 1.3%, at $85.33 a barrel, while crude oil futures West Texas Intermediate (WTI) They closed up $1.24, or 1.5%, at $81.57 a barrel. Both benchmarks gained about 2% on Monday, closing at their highest levels since April, while Brent rose from $77.52 at the beginning of June, although it is still far from the $90 it reached in mid-April.
Prices rose after an attack with ukrainian drones caused a large fire in a fuel tank at an oil terminal in the port of Azov, in the south of Russia, according to Russian officials and a Ukrainian intelligence source.
The Azov port has two terminals for petroleum products, through which in total about 220,000 tons of fuel were shipped for export during the period from January to May. The ongoing attacks on Russia’s oil refining complex pose a threat to global physical supply, in addition to increasing the risk premium quoted on crude oil futures.
“The Ukrainian attack reminds the market that Russian energy infrastructure is in the spotlight, the global market needs those barrels of crude oil and refined products to keep prices under control,” he said. John Kilduff, partner at Again Capital.
The war in the Middle East
Meanwhile, the Israeli Foreign Minister Israel Katz warned that a decision would soon be made about an all-out war with Hezbollah, even while USA try to avoid a major war between Israel and the Lebanese movement.
The special envoy of the American president Joe Biden, Amos Hochstein, said that he had been sent to Lebanon immediately after a brief trip to Israel because the situation was “serious.” “No matter where you look, the geopolitical risk factor is very high,” he said. Phil Flynn, from Price Futures Group. “We haven’t seen a major impact on supply, but that could change very quickly.”
Source: Ambito
