Brent rises as Russia-Ukraine conflict intensifies

The front-month ICE Brent contract has gained $1.06/bbl on the day, to trade at $74.73/bbl at 09.00 GMT.

PHOTO: Getty Images

Upward pressure:

The escalating Russia-Ukraine war continues to drive up Brent crude prices.

Russia has intensified its offensive after Britain and the US permitted Ukraine to target Russia with their weapons.

On Thursday, Russian President Vladimir Putin announced that Russia had fired a ballistic missile at Ukraine and warned of a potential global conflict, increasing fears of oil supply disruptions, according to a Reuters report.

“This indicates the war has entered a new phase, raising concerns around disruptions to supply,” said Daniel Hynes, senior commodity strategist at ANZ Bank.

Oil prices are “awaiting further developments in the tit-for-tat escalation in warfare between Kyiv and Moscow since last weekend,” Vandana Hari, founder and analyst at VANDA Insights, added.

Downward pressure:

Rising US crude stocks have exerted some downward pressure on Brent futures.

The US Energy Information Administration (EIA) reported a 545,000-bbl increase in commercial crude oil inventories, bringing the total to 430 million bbls for the week ending 15 November.

Market analysts are expecting the EIA to report another rise in US crude stocks next week.

By Tuhin Roy

Please get in touch with comments or additional info to news@engine.online