WTI climbs to $63 as Europe, MidEast tensions rise

West Texas Intermediate (WTI) halted its three-day losing streak, trading around $62.90 during the early European hours on Monday. Crude oil prices gain ground amid rising geopolitical tensions in Europe and the Middle East.

Reuters cited Michael McCarthy, CEO of Moomoo Australia and New Zealand, saying, “reports over the weekend that Russia was threatening over the Polish border have provided traders with a timely reminder of the ongoing risks to European energy security from the north east.”

Russia launched airstrikes targeting western Ukraine near the border with Poland, prompting Poland’s NATO-aligned armed forces to deploy aircraft on Saturday to ensure the safety of Polish airspace.

Three Russian military jets also violated NATO Estonia’s airspace on Friday, while Germany’s air force reported that a Russian military plane entered neutral airspace on Sunday over the Baltic Sea.

On Friday, the European Union proposed its 19th sanctions package against Russia, featuring a ban on Russian LNG imports, restrictions on 118 additional shadow vessels, and measures targeting Chinese and other foreign firms purchasing Russian oil, in a fresh push to pressure Moscow to end the war in Ukraine.

Moreover, Britain, Canada, Australia and Portugal recognised the Palestinian state, prompting a furious response from Israel and adding to jitters in the key oil-producing region.

Oil’s upside remained capped by ongoing concerns over ample supply and softening demand, as Iraq boosted exports with the gradual rollback of voluntary OPEC+ production cuts, adding to supply pressures.

(Source: OANDA)