Oil Heads for Weekly Advance as Russia-Ukraine War Escalates
Oil headed for the biggest weekly gain since early October on an escalation of hostilities between Russia and Ukraine.
Brent traded above $74 a barrel, up more than 4% for the week, and West Texas Intermediate was near $70. The war has rapidly intensified following months of bloody attrition, with Russia launching a ballistic missile after the expanded use of Western-provided long-range weapons by Ukrainian forces.
Oil has swung between weekly gains and losses since mid-October, influenced by the push and pull of various factors from a strong dollar to ample supply. The Kremlin also revamped its nuclear doctrine this week, although Russia’s foreign minister sought to calm worries about a nuclear escalation.
Still, the oil market faces a sizeable supply glut in 2025, with investors watching for a decision from OPEC+ on plans to revive idled production. That would likely coincide with persistent weak demand from China, as the Asian nation struggles to pull its economy out of a sustained slump.
Brent for January settlement was steady at $74.34 a barrel at 9:15 a.m. in Singapore. WTI for January delivery was little changed at $70.23 a barrel.
Source: Bloomberg
