September 28, 2022

Amid tensions in Eastern Europe and the Middle East, oil prices rise on supply concerns.

Crane Structure Oil Petroleum Pumpjack Machinery

Oil prices rose on Monday amid fears of supply disruptions amid rising tensions in Eastern Europe and the Middle East, which could further tighten the already tight market, while OPEC and its allies sought to boost production. The struggle continued.

Brent crude futures rose 81 cents, or 0.9%, to 44 88.70 a barrel at 0344 GMT, replacing a loss of 0.6% on Friday.

US West Texas Intermediate (WTI) crude futures fell 0.5 percent on Friday to 72 cents, or 0.9 percent, to 85 85.86 a barrel.

Both benchmarks rose for the fifth week in a row last week, rising nearly 2% to reach their highest level since October 2014. Prices have already risen more than 10% this year on fears of tightening supplies.

Kazuhiko Saito, chief analyst at Fujitomi Securities Co Ltd, said investors were happy with the geopolitical threat between Russia and Ukraine, as well as the Middle East, while OPEC + continued to fail to reach its production target.

He said expectations of increased demand for thermal oil in the United States during the cold season also added to the pressure.

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