Latest News

Oil increases as intensifying Ukraine war increases supply risk

Oil rates increased on Friday after Russia said it had fired a ballistic missile at Ukraine and alerted of a widening dispute, raising the possibility of tightening up unrefined materials.

Brent unrefined futures gained 14 cents, or 0.2%, to $ 74.37 a barrel by 0007 GMT. U.S. West Texas Intermediate crude futures increased 17 cents, or 0.2%, to $70.27 per barrel.

Russian President Vladimir Putin said on Thursday that the Ukraine war was growing into a worldwide dispute after the U.S. and Britain allowed Ukraine to strike Russia with their weapons.

Putin, who said Russia responded to using U.S. and British rockets by firing a new type of hypersonic medium-range ballistic rocket at a Ukrainian military center, alerted the West that Moscow might retaliate further.

After approval from the administration of President Joe Biden, Ukraine struck Russia with six U.S.-made ATACMS on Nov. 19 and with British Storm Shadow rockets and U.S.-made HIMARS on Nov. 21, Putin said.

Russia is among the world's top crude oil producing nations, even with output declines following import bans tied to its invasion of Ukraine and supply curbs by manufacturer group OPEC+. Russia this month stated it produced about 9 million barrels of oil a day.

Ukraine has used drones to target Russian oil infrastructure, consisting of in June, when it used long-range attack drones to strike 4 Russian refineries.

Swelling U.S. crude and fuel stocks minimal cost gains, with government data released this week revealing crude increased by 545,000 barrels in the week to Nov. 15 to 430.3 million barrels and fuel inventories by 2.1 million barrels to 208.9 million barrels.

Some analysts anticipate another dive in oil inventories in next week's information.

We will be anticipating a rebound in production in addition to US refinery activity next week that will bring negative ramifications for both unrefined and key items, stated Jim Ritterbusch of Ritterbusch and Associates in Florida.

The world's leading crude importer, China, meanwhile on Thursday revealed policy procedures to improve trade, including assistance for energy product imports, in the middle of concerns over U.S. President-elect Donald Trump's dangers to impose tariffs.

(source: Reuters)