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Highlights
- Crude oil prices rose on Monday.
- The significant rise in the prices of crude oil is underpinned by an ongoing supply crunch and political unrest in the Middle East and Eastern Europe.
- Both the benchmarks have registered sixth straight weekly gain with nearly 17% gains coming in the last month alone.
Crude Oil prices rose on Monday to record the biggest monthly gain in a year. The significant rise in the prices of crude oil is underpinned by an ongoing supply crunch and political unrest in the Middle East and Eastern Europe.
April delivery Brent Crude oil futures last traded at US$89.41 per barrel up 0.21%, whereas March delivery WTI crude oil futures traded 0.17% up at US$88.30 per barrel as of 1 February 2022 at 12:49 PM AEDT.
Both the benchmarks have registered sixth straight weekly gain with nearly 17% gains coming in the last month alone.
Tight supplies pushing prices
Major oil-producing nations across the globe including OPEC and non-OPEC have struggled to enhance their production. The undersupplies have created a shortage of oil in the market.
Additionally, crude oil prices also rose due to the possibility of military conflict between Russia and Ukraine, expected to hamper natural gas supplies to Europe.
Source: © Edhardream | Megapixl.com
The geopolitical tension involving the UAE and Russia, the biggest oil players has intensified the oil supply issues.
Apart from this, crude oil imports in China are expected to rise by 7% in the current year, increasing concerns about oil supplies.
Bottom Line
Crude oil prices rose on Monday to record the biggest monthly gain in the last one year amid tight supplies and geopolitical unrest involving Russia and the UAE.
