On Monday, January 22, Brent crude oil prices significantly rose, surpassing $80 per barrel for the first time in ten days.
This increase stems from geopolitical conflicts in the Middle East and Russia. These conflicts raise worries about potential global supply disruptions.
West Texas Intermediate (WTI) for March delivery climbed 2.06% or $1.51, settling at $74.76 per barrel.
This trading took place on the New York Mercantile Exchange (Nymex).
Similarly, Brent crude for the same month went up by 1.90% or $1.50. It closed at $80.06 per barrel on the Intercontinental Exchange (ICE).
U.S. Vice Admiral Brad Cooper reported on Monday about Iran’s involvement in ship attacks in the Red Sea.
Iran, a key oil producer, has been linked to the Houthi group’s actions. This situation escalates tensions in the region.
It also fuels fears about the safety of oil transportation and production there.
Another significant event was a drone attack on a Russian gas terminal. Ukraine was believed to be behind this attack.
It forced Russia to suspend some operations at the Novatek facility. This event adds to the global concerns impacting oil prices.
Smyllei Curcio, StoneX’s Head of Oil, Gas, and Renewables, offers insights. He notes that China’s slowing economy is somewhat controlling the rise in oil prices.
Curcio pointed out the People’s Bank of China (PBoC) decision to keep interest rates unchanged. This decision was unexpected and has made investors cautious.
Despite these factors, Curcio views the overall trend as bullish. He advises considering strategies that benefit from and safeguard against the upward trend in oil prices.