Oil & Gas

Crude oil prices began the week with a fresh uptick following last week’s brief pause in gains, as geopolitical tensions in Europe reignited concerns over global energy security. Brent crude climbed to $67.15 a barrel, while West Texas Intermediate rose to $63.10, both up from Friday’s close. The gains come after a short-lived reversal in the previous two-week rally, which had been dampened by forecasts of excess global supply.

Driving the renewed upward pressure were rising tensions between Russia and its European neighbors. Reports emerged over the weekend of Russian aircraft violating Estonian airspace and flying through neutral zones over the Baltic Sea. In addition, airstrikes on western Ukraine near the Polish border heightened fears of broader conflict. These developments have reminded markets of the fragility of European energy supplies and have caused traders to price in potential supply disruptions.

Further contributing to the price increase were intensified Ukrainian attacks on Russian oil refineries, though Russian pipeline operator Transneft denied any significant damage to infrastructure. In the Middle East, four Western nations recognized Palestinian statehood amid Israel’s ongoing military campaign in Gaza. The move triggered diplomatic backlash from Israel and the United States, with Washington warning of deteriorating ties with countries supporting the recognition. France’s plans to host a summit on a two-state solution have also added to regional uncertainty.

However, some downward pressure on oil prices has persisted. Reports of rising crude exports from Iraq suggest a potential oversupply in the market. While this has kept some traders cautious, China’s continued efforts to stockpile oil have helped balance the equation. Analysts remain divided, with many viewing China’s demand as a temporary buffer against a larger global supply glut.