Lagos, August 25 – Global oil prices rose on Monday, driven by a combination of renewed geopolitical risks to supply and a more optimistic outlook for global demand.
Brent crude futures were trading at approximately $67.43 a barrel, marking a roughly 0.21% increase from the previous day’s close. Similarly, West Texas Intermediate (WTI) crude futures saw a rise to approximately $63.73 a barrel, a gain of roughly 0.44%.
The price increase followed a weekend of intensified attacks on Russian energy infrastructure by Ukraine, fanning concerns about potential supply disruptions.
The most recent attacks included a drone strike that reportedly caused a major blaze at the Ust-Luga fuel export terminal and continued fires at the Novoshakhtinsk refinery. The Guardian reported.
Beyond the immediate supply concerns, a second key factor contributing to the price increase was an improving investor sentiment regarding the global economy. Expectations for a cut in U.S. interest rates, fueled by recent statements from Federal Reserve officials, have buoyed the outlook for economic growth and, consequently, future fuel demand.
A more accommodative monetary policy is generally seen as a positive for economic activity, which in turn leads to greater consumption of energy.
