The price of crude oil has been rising on Asian exchanges for the second week. Last week, the price of Brent rose by almost 4%, and now continues to rise against the backdrop of tightening supply and escalating geopolitical tensions. Reuters writes about this.
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Attacks on Russian infrastructure fuel market sentiment. Explosions at oil refineries in Russia caused the price per barrel of Brent to rise by 32 cents (0.4%) to $85.66. American WTI oil rose in price by 40 cents (0.5%) to $81.44.
One of the strikes led to a fire at the Slavyansky refinery in Krasnodar, which annually processes 8.5 million tons of crude oil. Gas prices in Europe are also rising amid concerns about supplies from Russia.
Experts believe that oil prices may continue to rise. “Attacks on Russian refineries added $2-3 per barrel of risk premium to oil prices last week,” notes Vandana Hari, founder of Vanda Insights. However, new signals are required for more significant price fluctuations.
This week, investors are awaiting the results of the US Federal Reserve meeting. It is expected to shed light on the timing of interest rate cuts, which could impact oil prices.