Oil Prices Rise Amid Escalating Russia-Ukraine Tensions
OIL & GAS

Oil Prices Rise Amid Escalating Russia-Ukraine Tensions

Oil prices saw a significant uptick as rising geopolitical tensions between Russia and Ukraine overshadowed the impact of a larger-than-expected increase in U.S. crude inventories.

Brent crude futures rose by 96 cents, or 1.3%, to $73.77 per barrel as of 1017 GMT, while U.S. West Texas Intermediate (WTI) crude gained 99 cents, or 1.4%, to $69.74 per barrel. Prices had initially risen by more than $1 earlier in the day.

Russia-Ukraine Conflict Escalates The uptick in oil prices followed missile strikes between Russia and Ukraine. Ukraine launched British-made cruise missiles at Russian territory on Wednesday, the latest Western weapon Kyiv has been allowed to use, following a U.S. missile strike a day earlier. Russia retaliated on Thursday, launching an intercontinental ballistic missile at Ukraine—marking the first use of such a powerful, long-range missile in the ongoing war.

Ukraine has increasingly targeted Russian military infrastructure, and this escalation raises concerns over the security of oil supplies, particularly if Ukraine were to target Russian energy infrastructure.

OPEC+ Concerns and U.S. Inventory Data Despite the geopolitical concerns, oil market sentiment was tempered by a rise in U.S. crude inventories. The Energy Information Administration (EIA) reported an increase of 545,000 barrels in U.S. crude stocks for the week ending November 15, bringing inventories to 430.3 million barrels, which exceeded analysts' expectations. Gasoline inventories also saw a larger-than-expected rise, while distillate stockpiles posted a draw.

On the production side, there is growing speculation that OPEC+ may delay its planned output increases. The group, which includes OPEC members and allies like Russia, is meeting on December 1 and may push back planned output increases due to weak global oil demand. Initially, OPEC+ had intended to reverse production cuts gradually from late 2024 through 2025. However, the International Energy Agency (IEA) has forecast that even with these cuts, oil supply will still outpace demand by 2025, leading to uncertainty over future price trends.

As geopolitical risks continue to cloud the market and supply dynamics remain unpredictable, oil prices are likely to remain volatile in the near term.

Oil prices saw a significant uptick as rising geopolitical tensions between Russia and Ukraine overshadowed the impact of a larger-than-expected increase in U.S. crude inventories. Brent crude futures rose by 96 cents, or 1.3%, to $73.77 per barrel as of 1017 GMT, while U.S. West Texas Intermediate (WTI) crude gained 99 cents, or 1.4%, to $69.74 per barrel. Prices had initially risen by more than $1 earlier in the day. Russia-Ukraine Conflict Escalates The uptick in oil prices followed missile strikes between Russia and Ukraine. Ukraine launched British-made cruise missiles at Russian territory on Wednesday, the latest Western weapon Kyiv has been allowed to use, following a U.S. missile strike a day earlier. Russia retaliated on Thursday, launching an intercontinental ballistic missile at Ukraine—marking the first use of such a powerful, long-range missile in the ongoing war. Ukraine has increasingly targeted Russian military infrastructure, and this escalation raises concerns over the security of oil supplies, particularly if Ukraine were to target Russian energy infrastructure. OPEC+ Concerns and U.S. Inventory Data Despite the geopolitical concerns, oil market sentiment was tempered by a rise in U.S. crude inventories. The Energy Information Administration (EIA) reported an increase of 545,000 barrels in U.S. crude stocks for the week ending November 15, bringing inventories to 430.3 million barrels, which exceeded analysts' expectations. Gasoline inventories also saw a larger-than-expected rise, while distillate stockpiles posted a draw. On the production side, there is growing speculation that OPEC+ may delay its planned output increases. The group, which includes OPEC members and allies like Russia, is meeting on December 1 and may push back planned output increases due to weak global oil demand. Initially, OPEC+ had intended to reverse production cuts gradually from late 2024 through 2025. However, the International Energy Agency (IEA) has forecast that even with these cuts, oil supply will still outpace demand by 2025, leading to uncertainty over future price trends. As geopolitical risks continue to cloud the market and supply dynamics remain unpredictable, oil prices are likely to remain volatile in the near term.

Next Story
Real Estate

What Does Home Insurance Really Cover?

Home insurance is one of the most important protections a homeowner can have. It offers financial cover for unexpected damages, losses, or liabilities related to your property. However, many homeowners are not fully aware of what is actually included in their home insurance policy.This guide breaks down what home insurance really covers, so you can be better prepared and make informed decisions.What is home insurance?Home insurance is a financial product that protects your house and belongings against damage, theft, or accidents. It generally includes coverage for the building itself, as ..

Next Story
Infrastructure Urban

Hettich Strengthens Industry Ties at Madhya Pradesh Investment Meet

Hettich India, a global leader in furniture fittings, reinforced its commitment to Madhya Pradesh’s industrial growth as a Guest of Honour at an Interactive Session on Investment Opportunities in Power, Renewable Energy Equipment, and White Goods Manufacturing, hosted by the Government of Madhya Pradesh in partnership with the Confederation of Indian Industry (CII) at Hotel Trident, Nariman Point, Mumbai.The session, chaired by Dr Mohan Yadav, Hon’ble Chief Minister of Madhya Pradesh, brought together leading domestic and international investors, industry representatives, and business lead..

Next Story
Equipment

Raimondi Names New Saudi Branch Head

Raimondi Middle East has announced the appointment of Ahmad Shakkour as Branch Manager for the Kingdom of Saudi Arabia, reinforcing the company’s commitment to expanding its presence in one of its key regional markets.With Saudi Arabia driving a wave of large-scale infrastructure and urban development projects, Raimondi aims to strengthen its on-ground operations and customer engagement. The company currently has over 100 cranes deployed across the country and continues to expand its technical and service teams to support growing demand.“Saudi Arabia represents a cornerstone of our regiona..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?