Oil prices rise as rising geopolitical risks add to supply concerns

by Yuka Obayashi

TOKYO (Reuters) – Oil prices rose in early Asian trading on Monday on worries about a global supply shortage due to escalating conflict in the Middle East and between Russia and Ukraine, while a declining U.S. rig count pressured prices.

Brent crude futures were up 24 cents, or 0.3%, at $85.67 a barrel at 0029 GMT. U.S. crude futures rose 25 cents, or 0.3%, at $80.88 a barrel. Both benchmarks recorded changes of less than 1% last week compared to the previous week.

“Rising geopolitical tensions, an increase in attacks on energy facilities in Russia and Ukraine, as well as diminished hopes for a ceasefire in the Middle East increased concerns over global oil supplies,” said Hiroyuki Kikukawa, president of NS Trading, a unit of Nissan Securities. Is.” ,

“The decline in US rig numbers also adds to concerns about short supply,” he said.

Russia attacked vital infrastructure in Ukraine’s western region of Lviv early Sunday with missiles, Kiev said, in a major airstrike that saw a Russian cruise missile briefly fly over Polish airspace, according to Warsaw.

Kiev said Moscow launched 57 missiles and drones in the attack, which also targeted the capital Kiev, two days after the biggest aerial bombardment of Ukraine’s energy system in more than two years of full-scale war.

The move follows Ukraine’s recent attacks on Russian oil infrastructure, in which at least seven refineries were targeted by drones this month.

In the Middle East, Israeli forces surrounded two more Gaza hospitals on Sunday, coming under heavy fire on medical teams, the Palestinian Red Crescent said. Israel said it had captured 480 militants in the ongoing fighting at Gaza’s main Al Shifa hospital.

US Secretary of State Antony Blinken told Israeli Prime Minister Benjamin Netanyahu on Friday…

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