Rising Oil Prices Due to Political Instability in Russia and Supply Disruption Worries
Oil Prices Rise for Second Consecutive Session
Oil prices rose today, Tuesday, for the second session in a row, as concerns about political instability in Russia and the possibility of supply disruptions outweighed concerns about global demand.
Brent futures rose 46 cents, up 0.62%, to $74.64 a barrel, while West Texas Intermediate futures rose 49 cents, down 0.71%, to $69. $.86 per barrel by 0522 GMT.
Brent rose 0.5% on Monday and West Texas Intermediate added 0.3%, according to Reuters.
Political Instability in Russia Raises Concerns
On Saturday, a confrontation between Moscow and the Russian private military group Wagner was averted when the group’s heavily armed fighters left Rostov in southern Russia under an agreement that halted their rapid advance towards the capital.
The challenge has raised doubts about the strength of President Vladimir Putin and some concerns about potential disruptions to Russian oil supplies.
Potential Supply Cuts in Saudi Arabia
Investors are already thinking about cutting supply due to Saudi Arabia’s promise to cut production from July.
As the article suggests, oil prices have been rising for the second consecutive session due to concerns about political instability in Russia and the possibility of supply disruptions. Brent futures rose 0.62% to $74.64 a barrel, while West Texas Intermediate futures rose 0.71% to $69.86 per barrel.
The recent confrontation between Moscow and the Russian private military group Wagner has raised doubts about the strength of President Vladimir Putin and concerns about potential disruptions to Russian oil supplies. Investors are already thinking about cutting supply due to Saudi Arabia’s promise to cut production from July.
It remains to be seen how these political and supply disruptions will affect the oil market in the long run, but for now, prices are on the rise.
