India International News

Oil Slips As Geopolitical Tensions Overshadowed By Economic Worries

Early trading on Tuesday saw an easing of oil prices as concerns about the future of oil demand worldwide outweighed geopolitical tensions in the Middle East and supply concerns in the wake of an attack on a Russian fuel export terminal over the weekend.

Brent crude futures fell 14 cents, or 0.2%, to $79.92 a barrel by 0125 GMT, while U.S. West Texas Intermediate crude futures (WTI) were last down 10 cents, or 0.1%, at $74.66 a barrel.

A Ukrainian drone strike on Novatek’s Ust-Luga gasoline export terminal caused supply concerns and increased prices, resulting in a 2% increase in settlement for both contracts on Monday. Novatek will probably start all operations there in a few weeks.

According to reports, the Ust-Luga terminal’s damaged loading berths may have only “briefly impacted exports.” Still, the action raises the possibility that the Russia-Ukraine war may be “moving into a new phase where parties target key energy infrastructure.”

As the world’s largest importer of crude oil, the Asian behemoth’s faltering economic recovery has cast a shadow over geopolitical tensions. This has consequently increased concerns about the demand for oil globally.

As Chinese officials have implemented several policies to strengthen the economy, the country’s low level of domestic consumption has worried oil dealers about the future of demand.

In the Middle East, as Israeli forces advanced deep into western Khan Younis in Gaza, they stormed one hospital. They besieged one another, calling on Israel to protect patients, medical staff, and innocent bystanders.

American and British forces have also launched new attacks against a Houthi underground storage facility as well as missile and surveillance systems utilised by the Houthi militia, which is affiliated with Iran.

In addition to disrupting international transportation, the Houthis’ attacks on ships in and around the Red Sea region have increased inflationary fears. The group has declared that when Israel hits Gaza, their attacks constitute an act of solidarity with the Palestinians.

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