Oil prices rise amid rising tensions between Russia and Ukraine
Global oil markets rose slightly on Thursday, driven by fears that supplies could be restricted due to ongoing Ukrainian attacks on Russian oil infrastructure and stalled peace talks between the two sides.
Current price levels
The price of a barrel of Brent crude rose to $62.75 per barrel.
The West Texas Intermediate crude rose to $59.10 per barrel.
Ukrainian attacks target Russian oil infrastructure
A Ukrainian military intelligence source revealed that a major oil pipeline in central Russia has been targeted, the fifth such attack on this vital line that transports Russian oil to countries such as Hungary and Slovakia.
Ukrainian attacks on Russian oil refineries continue repeatedly, with the aim of destabilizing vital strategic assets, resulting in:
- Russian refinery output fell to about 5 million barrels per day from September to November.
- Production fell by 335,000 barrels per day compared to last year.
- Gasoline production was particularly affected.
- Significant decline in gas oil production.
Stalled peace talks affect the market
The realization that progress on Ukrainian peace initiatives is stalling helped push prices higher, especially after US President Donald Trump's representatives failed to make any tangible progress during their negotiations with the Kremlin to end the war.
Trump stated that "it's unclear what's going to happen now," adding to the uncertainty in global markets.
future forecasts
Crude oil is expected to remain confined to a narrow trading range in the coming period, as diplomatic efforts to end the Ukraine-Russia conflict continue.
Analysts suggest that weak market fundamentals may keep gains limited, despite the geopolitical factors driving prices.
Continued tensions between Russia and Ukraine threaten to disrupt the flow of Russian oil to global markets, which could affect supply stability and price appreciation in the medium term.
