Oil prices rose on Tuesday as concerns about supply disruptions grew amid an escalation of the conflict between Russia and Ukraine.
Brent crude added 40 cents, or 0.59%, to $68.55 a barrel by 0149 GMT, while U.S. West Texas Intermediate crude was at $65.06 a barrel, up $1.05, or 1.64%.
Recent Ukrainian drone attacks shut down facilities accounting for at least 17% of Russia’s oil processing capacity, or 1.1 million barrels per day, according to Reuters’ calculations.
Three-and-a-half-years into the war, Russia and Ukraine have both intensified airstrikes in recent weeks. Russia has targeted Ukraine’s energy and transport systems, while Ukraine has been attacking Russian oil refineries and pipelines.
“Ongoing risks to energy infrastructure in Russia remain high. Ukraine struck more Russian oil refineries over the weekend as it ramped up its attacks on infrastructure,” said Daniel Hynes, senior commodity strategist at ANZ, in a note on Tuesday.
China’s vision for “a new global order” could potentially add to geopolitical tensions.
Chinese President Xi Jinping pressed his vision on Monday for a new global security and economic order that prioritises the “Global South”, in a direct challenge to the U.S., during a summit that included the leaders of Russia and India.
