Oil prices up with geopolitical tension between Russia, Ukraine

By Duygu Alhan

Oil prices increased amid growing geopolitical tension between Russia and Ukraine, while concerns about demand in China and global oil demand forecasts limit further price rises.

The international oil benchmark of Brent crude rose 0.18% to $70.98 per barrel at 9.41 a.m. local time (06.41 GMT), down from the previous session's close of $70.85.

The US benchmark West Texas Intermediate also increased by 0.3% to $66.98 per barrel, compared to $66.78 at the prior session's close.

The conflict between Russia and Ukraine lent upward support to oil prices.

Russia carried out massive airstrikes across multiple Ukrainian regions, including the capital Kyiv, overnight and into Sunday morning, causing significant damage to energy infrastructure.

Russia used "various types of drones, including Shaheds, as well as cruise, ballistic, and aeroballistic missiles—Zircons, Iskanders, and Kinzhals,” Ukrainian President Volodymyr Zelenskyy said on X.

Russia launched about 120 missiles and 90 drones overnight, Zelenskyy said, adding that Ukraine's air defenses destroyed over 140 of them, all aimed at the country's energy infrastructure.

Zelenskyy acknowledged that some facilities have been damaged by direct hits and falling debris, and that some areas are still without power. However, concerned departments are working to handle the situation.

On the other hand, concerns about demand in China, the world's largest crude oil importer, and global oil demand forecasts are limiting the rise in prices.

Last week, Fatih Birol, the head of the International Energy Agency, said that global oil demand will remain below 1 million barrels per day this year.