WASHINGTON (dpa-AFX) - Oil prices moved higher on Monday amid concerns about supply due to geopolitical risks following continued drone attacks by Ukraine on Russian oil refineries.
According to reports, the disruption in Russian refineries will likely result in a drop of close to 200,000 barrels per day to around 2.15 million barrels per day this month.
Analysts say that the recent Ukrainian attacks on Russian refineries added a risk premium of $2-$3 per barrel to crude prices.
Oil prices were also supported by data showing a drop in crude exports from Iraq and Saudi Arabia.
Improved industrial output and retail sales data from China and the IEA forecast of a supply deficit through 2024, changing its earlier prediction of a surplus, contributed as well to the jump in oil prices.
West Texas Intermediate Crude oil futures for April ended higher by $1.68 or about 2.1% at $82.72 a barrel, the highest settlement since October 31, 2023.
Brent crude futures settled at $86.89 a barrel, gaining $1.55 or about 1.8%.
According to reports, Iraq has said that it would cut crude exports to 3.3 million barrels per day in the coming months, in order to compensate for exceeding its quota since the beginning of this year.
Investors now look ahead to the Federal Reserve's monetary policy announcement, due on Wednesday. The central bank is expected to announce no changes, but the policy statement and dot plots may offer some clarity on future interest rate moves.
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