HONG KONG - Oil prices extended their rally on Tuesday on supply worries as European leaders debated banning imports from Russia, though equities stood their ground despite a tepid Wall Street lead and the prospect of a sharper hike in US interest rates.
Adding to upward pressure on oil was a warning from Saudi Arabia that Yemeni rebel attacks on its oil facilities pose a"direct threat" to global supplies after Red Sea facilities belonging to oil giant Saudi Aramco were targeted. "It seems energy traders are growing more confident that supply shortages are just around the corner," warned OANDA's Edward Moya.
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