Oil prices continued to rise for the second consecutive session during trading on Tuesday, driven by concerns over global oil supply shortages, especially as tensions between Russia and Ukraine escalate. However, the anticipated U.S. tariffs are putting pressure on prices, limiting the gains.
Performance of Oil Prices in Global Markets In today's trading, U.S. crude oil contracts rose by 1.11%, reaching $73.22 per barrel, while Brent crude contracts experienced a 1.03% increase, recording $76.83 per barrel. This increase reflects the markets' concerns about declining Russian and Ukrainian supplies and its potential impact on price stability.
Reasons for the Rise in Crude Oil Prices Escalation of Geopolitical Tensions Oil prices rose following a drone attack that targeted a oil refinery in the Saratov region of Russia, operated by Rosneft, which exacerbates disruptions to Russian supplies and fuels market fears.
Threat to Russian Supplies Pressure on oil markets increased after a report published by Politico stated that European countries intend to seize the Russian shadow fleet, which could lead to a reduction in Russian supply in the coming period.
U.S. Sanctions on Iranian Oil Exports Oil prices strengthened their gains after the United States imposed new sanctions on Iranian oil shipping networks to China, as part of the "maximum pressure" policy reinstated by President Donald Trump, which reduces crude supplies and puts pressure on markets.
Negative Impact of U.S. Tariffs On the other hand, oil prices are facing pressure due to fears of the impact of tariffs imposed by President Donald Trump, as analysts believe that these measures could slow global economic growth, weakening demand for oil and limiting price gains.
Performance of Other Energy Contracts Heating oil contracts saw a noticeable increase of 1.37%, bringing the price per gallon to $2.4849, while gasoline contracts rose by 1.31%, recording $2.1318 per gallon. Natural gas contracts also increased by 1.86%, reaching $3.508 per million British thermal units.
Observers are closely watching market developments amid these challenges, especially with the ongoing geopolitical conflict and economic sanctions and their impact on global oil flows.
