Oil Prices Rise on Geopolitical Tensions in Europe and Middle East
Oil prices gained in Asian trading on Monday, supported by rising geopolitical risks in Europe and the Middle East. However, concerns over higher supply levels and the potential impact of trade tariffs on global fuel demand kept gains in check.
Brent crude futures rose 34 cents, or 0.54%, to trade at $67.07 per barrel by 03:17 GMT. The U.S. West Texas Intermediate (WTI) crude contract for October climbed 34 cents, also up 0.54%, to $63.02 per barrel. The October contract expires Monday, while the more active November WTI contract added 36 cents, or 0.58%, to $62.76 per barrel.
Michael McCarthy, CEO of Moomoo Australia and New Zealand, said reports of Russian threats along the Polish border reminded traders of the ongoing risks to Europe’s energy security. Over the weekend, Poland deployed allied aircraft after Russia launched airstrikes near its border with Ukraine. In separate incidents, NATO reported Russian fighter jets violating Estonia’s airspace, while Germany confirmed a Russian military aircraft entered neutral Baltic airspace. The UN Security Council is set to meet Monday to address Estonia’s complaint.
Meanwhile, Ukraine has escalated drone attacks on Russian energy infrastructure, targeting refineries and terminals. At the same time, U.S. President Donald Trump has urged the European Union to stop buying Russian oil and gas.
In the Middle East, tensions also rose as four Western nations officially recognized Palestinian statehood, sparking strong condemnation from Israel and adding uncertainty in one of the world’s key oil-producing regions.
Supply Concerns Weigh on Market
On Friday, Brent and WTI settled more than 1% lower, ending the week with modest declines. Traders cited fears of excess supply and weakening demand, despite expectations that the Federal Reserve’s recent interest-rate cut would boost consumption.
Iraq has ramped up exports after unwinding voluntary OPEC+ production cuts, according to its state oil marketer SOMO. The country shipped an average of 3.38 million barrels per day in August and expects September exports to range between 3.4 million and 3.45 million bpd.
Analyst Tim Evans noted that rising inventories over the past six months show supply continues to outpace demand. While strategic reserves in the U.S. and China have absorbed some of the surplus, Evans warned that growing stockpiles still limit near-term upside potential for oil prices and leave the market vulnerable to downside risks.
