Oil prices extend gains as Iran, Russia-Ukraine tensions dent supply outlook
Oil prices rose in Asian trade on Tuesday, extending sharp gains from the prior session as uncertainty over a U.S.-Iran nuclear deal and worsening tensions between Ukraine and Russia heralded more potential supply disruptions.
Gains in oil came after recent wildfires in Canada’s oil-producing province, Alberta, stood to impact output. Markets were also cheered by the Organization for Petroleum Exporting Countries and allies (OPEC+) agreeing to increase production in line with market expectations.
A deadly drone strike by Ukraine against Russia also ramped up concerns over more geopolitical disruptions to oil supply, as did a report that the U.S. was considering even stricter sanctions on Russia’s oil industry.
Brent oil futures rose 0.8% to $65.17 a barrel, while West Texas Intermediate crude futures rose 0.9% to $62.04 a barrel by 21:19 ET (01:19 GMT).
Source: Investing.com