Oil Rises 1.31% Amid Russia-Ukraine Tensions
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Brent crude oil rose by 1.31% on Friday, closing at $70.33 per barrel, as geopolitical tensions escalated following US President Donald Trump’s threat to impose sanctions on Russia if it fails to reach a cease-fire agreement with Ukraine.
Trump stated he was “strongly considering” sanctions targeting Russian banks and tariffs on Russian goods in response to continued military actions.
Earlier in the day, West Texas Intermediate (WTI) crude reached $68.22, influenced by comments from Russia’s Deputy Prime Minister Alexander Novak, who indicated that OPEC+ would proceed with its planned production increase in April but remained open to adjusting output levels later if market conditions warranted.
The market’s focus was dominated by concerns over Russia’s actions, overshadowing other developments such as the ongoing Israel-Hamas conflict.
Despite these geopolitical risks, OPEC+’s decision to increase output in April added to oversupply worries.
The group’s plan to raise production by 138,000 barrels per day, coupled with the potential restart of the Kirkuk-Ceyhan pipeline and rising output from Kazakhstan’s Tengiz field, has heightened fears of excess supply in the global oil market.
Kazakhstan’s production from the Tengiz field alone reached a record 1.747 million barrels per day in February, further contributing to these concerns.
For the week, Brent crude fell by 3.4%, reflecting the broader uncertainty surrounding global oil supply and demand dynamics.
The combination of geopolitical risks, OPEC+’s production strategy, and rising output from key producers has created a volatile environment for oil prices.
Investors remain cautious as they assess the potential impact of these factors on the market’s balance in the coming months.
Sources: Trading Economics, MarketScreener
