Geopolitical tensions drive oil prices up at the beginning of the week
Oil prices rose in trading on Monday, September 22, supported by escalating geopolitical tensions in Europe and the Middle East, with Brent crude gaining 0.8% to reach $67.19 per barrel, while U.S. crude jumped by a similar percentage to $63.16 per barrel.
This rise followed reports of Russian threats on the Polish border, where Poland and its allies deployed military aircraft on Saturday morning after Russian airstrikes targeted western Ukraine. The Security Council is scheduled to hold an emergency meeting today to discuss violations of Estonian airspace.
Commenting on the developments, Michael McCarthy, CEO of the investment platform "Momo", said: "Reports of Russian threats reminded traders of the ongoing risks to European energy security," adding that "there are fundamental assumptions about market expectations that include increased supply from the United States and the OPEC+ group, and now Russia."
On the other hand, the recognition of Palestine by four Western countries has exacerbated tensions in the Middle East, provoking an angry Israeli reaction and increasing concerns about instability in the oil-producing region.
It is worth noting that prices ended last week down by more than 1% due to concerns about oversupply and declining demand, before rising again today due to geopolitical factors.
