Oil prices increased on Tuesday following reports of continued fighting in Ukraine and uncertainty over a potential resolution to the conflict. Brent crude futures rose by 1.8% to $87.45 per barrel in early trading, while U.S. West Texas Intermediate (WTI) climbed 1.6% to $83.10. The upward trend reflects concerns about supply disruptions in a key oil-producing region.
Analysts at Energy Aspects cited persistent risks to global oil supply as the main driver behind the price surge. The firm’s lead analyst, Amrita Sen, stated that while market sentiment remains cautious, the lack of progress in peace negotiations has kept pressure on prices. "We remain skeptical of an immediate resolution to the war," Sen said. "Geopolitical tensions continue to weigh on supply expectations."
The conflict in Ukraine has disrupted energy flows from Russia, a major global supplier. Earlier this month, Ukraine suspended oil transit through a critical pipeline after Russian forces targeted infrastructure near the border. The move reduced exports by approximately 400,000 barrels per day, tightening global supply.
European refiners are particularly exposed to these disruptions. Uniper SE, Germany’s largest gas importer, warned last week that it may need to cut production if the situation worsens. The company relies on Russian gas for nearly half of its supply, creating additional strain on energy markets.
The price increase comes as the International Energy Agency (IEA) prepares to release its monthly oil market report. Analysts expect the report to highlight a supply deficit in the coming months unless production rises or demand falls. Traders are closely watching for any signs of policy shifts from major oil-producing nations.
Source: e24.no