Oil prices increased on Monday over supply concerns after an “attempted armed rebellion” against the Russian government by the Wagner paramilitary group, while uncertainties around the monetary policies of the major economies are limiting further price upticks.
International benchmark Brent crude traded at $74.20 per barrel at 10.54 a.m. local time (0754 GMT), a 0.25% gain from the closing price of $74.01 a barrel in the previous trading session on Friday.
The American benchmark West Texas Intermediate (WTI) traded at the same time at $69.36 per barrel, up 0.28% from the previous session’s close of $69.16 per barrel.
On Friday, Russia’s paramilitary Wagner group accused the Russian forces of attacking its fighters and the group subsequently crossed from Ukraine into the Russian city of Rostov-on-Don.
In response, the Federal Security Service in Russia initiated a criminal case against Wagner for ‘armed rebellion.’ Russian President Vladimir Putin called Wagner’s uprising as an act of ‘treason.’
However, Wagner fighters later decided to turn back when they were 200 kilometers (124 miles) from Moscow.
Meanwhile, upward price movements were hindered by lingering demand fears caused by global economic recession expectations as the central banks of the big economies continue to rise interest rates to tame inflation.
US Federal Reserve Chair Jerome Powell on Thursday signaled the likelihood of future interest rate hikes to lower inflation. He also warned that the central bank would move at a ‘careful pace’ in interest rate increases to avoid a mistake.
