Oil Prices Rise As Russia-Ukraine Tensions Offset OPEC+ Output Hike
Oil prices rose sharply in Asian trade on Monday after escalating military action between Russia and Ukraine and reports of more U.S. sanctions on Moscow largely offset an increase in output by OPEC+.
Ukraine launched a large-scale drone strike on Russia over the weekend, retaliating against Russian aggression seen last week but further undermining talks on an upcoming ceasefire.
Separately, Bloomberg reported that there is a bipartisan push in the U.S. Congress to impose more sanctions on Russia’s oil industry, this time hitting major buyers such as China and India.
The prospect of more sanctions suggests tighter supply, which helped the market shrug off an output increase by the Organization of the Petroleum Exporting Countries and its allies (OPEC+), which was seen as in line with expectations.
Brent crude for August delivery rose 2.3% to $64.23 a barrel, while West Texas Intermediate crude rose 2.4% to $61.23 by 9:37 p.m. ET (01:37 GMT).
Source: Investing.com
