On Tuesday, oil prices increased following an intensified war between Russia and Ukraine, indicating supply concerns.
West Texas Intermediate (WTI) futures for January delivery leaped by 0.36% to $69.19 per barrel on November 26’s Asian afternoon session. Similarly, Brent contracts for February shipments rose by 0.29% to $72.69 a barrel.
Based on reports, Russia amplified its drone attacks on Ukraine, underpinning prices. According to Kyiv Mayor Vitali Klitschko, drones entered the capital from various directions.
In connection with this, the tension between the countries heightened after the United States made a critical decision. It allowed the Eastern European country to utilize US-made weapons to attack Moscow.
Correspondingly, Russia stressed a clear warning of strict retaliation following the move, hence the recent aggression.
On top of that, the market raised concerns about supply disruption as Moscow is a major producer of oil. It highlighted that continued and enlarged hostilities could trigger an upset in crude reserves.
In contrast, price gains were slightly limited by the ceasefire efforts of Israel and Hezbollah. Additionally, a potential imposition of import tariffs by Donald Trump on Mexico and Canada restricted the growth.
Furthermore, an agreement of peace might be accomplished within days, which may ease concerns regarding crude oil supply challenges.
China to Boost Crude Oil Imports on High Quotas
As shown by reports, China could boost its crude oil imports after independent refiners were issued more quotas for the end of the year.
More specifically, the expanded target for the so-called teapots settles at 5.84 million metric tons (MMT).
The increased quota of private refiners was provided by authorities in China. They also expect the imports by the end of 2024 or early next year.
Moreover, this figure is equivalent to 116,800.00 barrels per day (bpd) of oil. Meanwhile, the market has yet to determine recovery signs in the country’s crude demand.
