Oil Rises, Conflict Risks & Supply in Focus
World oil prices rose on Tuesday, fueled by concerns about supply disruptions due to the escalating Russia-Ukraine conflict. Brent crude rose $1.12 to $69.27 per barrel, while West Texas Intermediate (WTI) gained $1.77 to $65.78 per barrel.
The gains were also driven by market speculation about upcoming US jobs data, which could influence interest rate policy and energy demand. The peak US summer travel season ended after the Labor Day holiday, marking the end of a period of high demand in the world's largest fuel market.
On the supply side, a Ukrainian drone attack shut down facilities equivalent to 17% of Russia's oil processing capacity, or about 1.1 million barrels per day. This raised concerns about supply disruptions amid the ongoing conflict.
Investors are now looking ahead to the OPEC+ meeting on September 7 for clues on future production plans. Analysts expect OPEC+ to refrain from voluntarily reducing its cuts of around 1.65 million barrels per day, which have been supporting oil prices around $60 per barrel.
However, analysts are concerned that oil prices could fall to an average of $55 per barrel in the final quarter of this year before OPEC+ stabilizes the market. Meanwhile, the US jobs data due this week will be of concern to the market as it could strengthen the possibility of monetary easing. (ayu)
Source: Newsmaker.id