Oil prices increased amid growing geopolitical tension between Russia and Ukraine, while demand concerns in China and global oil demand forecasts limit further price rises.
The international oil benchmark of Brent crude rose 0.18% to $70.98 per barrel at 9.41 a.m. local time (06.41 GMT), down from the previous session’s close of $70.85.
The US benchmark West Texas Intermediate also increased by 0.3% to $66.98 per barrel, compared to $66.78 at the prior session’s close.
Conflict between Russia and Ukraine lent upward support to oil prices by fueling market players’ supply fears as both countries continue to target critical energy infrastructures.
Russia carried out massive airstrikes across multiple Ukrainian regions, including the capital Kyiv, overnight and into Sunday morning, causing significant damage to energy infrastructure
Russia used ‘various types of drones, including Shaheds, as well as cruise, ballistic, and aeroballistic missiles—Zircons, Iskanders, and Kinzhals,” Ukrainian President Volodymyr Zelenskyy said on X.
Russia launched about 120 missiles and 90 drones overnight, Zelenskyy said, adding that Ukraine’s air defenses destroyed over 140 of them, all aimed at the country’s energy infrastructure.
Zelenskyy acknowledged that some facilities have been damaged by direct hits and falling debris, and that some areas are still without power. However, concerned departments are working to handle the situation.
On the other hand, market players’ concerns about demand in China, the world’s largest crude oil importer, and global oil demand forecasts limit the rise in prices.
Fatih Birol, the head of the International Energy Agency, stated that global oil demand will remain below 1 million barrels per day this year in the UN Climate Change Conference COP29, currently taking place in Azerbaijan’s capital, Baku on Friday.
