Oil rises as tight market looks to Russian-Western diplomacy

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Brent crude futures at $93.95 a barrel. U.S. West Texas Intermediate crude futures at $91.56 a barrel

Oil prices rose on Monday as fresh diplomatic efforts to resolve the Ukraine crisis provided some relief from supply concerns that have kept oil prices near $100 a barrel.

French President Emmanuel Macron said on Monday that U.S. President Joe Biden and Russian President Vladimir Putin have agreed in principle to a summit over Ukraine, but the Kremlin said there were no immediate plans for a meeting.“Energy could be clear collateral damage of a kinetic conflict between Russia and Ukraine,” said Helima Croft, global head of commodity strategy at RBC.

Meanwhile, ministers of Arab oil-producing countries said on Sunday that OPEC+ should stick to its current agreement to add 400,000 barrels per day of oil output each month, rejecting calls to pump more to ease pressure on prices. Iranian foreign ministry spokesperson Saeed Khatibzadeh said “significant progress” had been made in talks to revive Iran’s 2015 nuclear agreement on Monday after a senior European Union official said on Friday that a deal was “very, very close.”

 

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The Oil Industry never misses an opportunity to raise prices! Never mind the volumes in the pipeline or in storage but just immediately point to POTENTIAL disruptions to capitalize on the situation.

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