Crude Oil Prices Rise Amid Escalating Russia-Ukraine Tensions

Crude oil prices experienced a notable uptick during today's trading session, Monday, driven by heightened concerns over potential supply shortages. These worries have been fueled by a sharp escalation in tensions between Russia and Ukraine over the weekend, which has disrupted market stability.

Crude Oil Prices Performance Today:

U.S. oil contracts rose by 0.84% during today's trading, reaching about $67.45 per barrel, while Brent crude contracts increased by 0.78%, recording $71.42 per barrel.

Reasons for the Rise in Crude Oil Prices:

Crude oil prices rose during trading alongside increasing fears about oil supply shortages, especially after Russia conducted its largest air raid on Ukraine since nearly three months ago yesterday, causing significant damage to Ukraine's energy network.

On its part, U.S. sources reported that the administration of President Joe Biden has allowed Ukraine to use U.S.-made weapons to strike areas inside Russia, marking a significant shift in Washington's policy regarding the conflict between Ukraine and Russia. This, in turn, may heighten fears of potential attacks by Ukraine on Russian facilities, which could hinder the flow of Russian oil supplies to the markets.

Furthermore, crude oil prices received support from reports indicating that at least three refineries in Russia had to halt operations or reduce their output due to heavy losses amid export restrictions, rising crude prices, and soaring lending costs, complicating global oil supply dynamics.

A Look at Other Commodity Markets:

In other commodities, heating oil contracts fell by 1.11%, recording about $2.1949, while gasoline contracts rose by 0.84%, reaching about $1.9657. Natural gas contracts also showed a significant increase of 2.59%, with a price of $2.896 per million British thermal units.

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