Tuesday, 25 January 2022

Oil rises on concerns global political risks could tighten supplies | Reuters

Oil rises on concerns global political risks could tighten supplies | Reuters

Oil prices rose over 2% on Tuesday on concerns supplies could become tight due to Ukraine-Russia tensions, threats to infrastructure in the United Arab Emirates and struggles by OPEC+ to hit its targeted monthly output increase.

Analysts noted that oil prices rose despite a drop in equities markets (.SPX), (.IXIC) and the possibility of an interest rate hike by the U.S. Federal Reserve on Wednesday. read more

Brent futures rose $1.93, or 2.2%, to settle at $88.20 a barrel, while U.S. West Texas Intermediate (WTI) crude rose $2.29, or 2.8%, to settle at $85.60.

"Geopolitical risks sent crude prices higher as a tight oil market that is already battling low inventories seems vulnerable to shortages in the coming months," said Edward Moya, senior market analyst at OANDA.

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