Crude oil rises on tight supplies and ongoing political unrest

January 31, 2022 02:02 PM AEDT | By Arpit Verma

Crude oil rises on tight supplies and ongoing political unrest — Image source: Copyright © 2022 Kalkine Media®

Tight supplies pushing prices

Major oil-producing nations across the globe including OPEC and non-OPEC have struggled to enhance their production. The prices were also affected by Yemen’s attack on the UAE’s oil facility.

Additionally, crude oil prices also rose due to possible military conflict between Russia and Ukraine, expected to hamper natural gas supplies to Europe.

Falling oil prices

Source: © Edhardream | Megapixl.com

The oil watchers are now eyeing OPEC’s stance on rising oil output in March at its meeting on 2 February 2022. The cartel has raised 400,000bpd output each month since August to phase out the production cuts made in 2020.

On the demand side, crude oil imports in China are expected to rise by 7% in the current year, increasing concerns to oil supplies.

Bottom Line

Crude oil prices further rose on Monday after hitting seven-year high levels on Friday amid tight supplies and geopolitical unrest between Russia and Ukraine.

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