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Crude oil is moving slightly higher in overnight trading early Monday in the wake of events in Russia over the weekend, with traders reacting cautiously as they try to gauge the impact of instability in the country.
Russian Wagner Mercenary Group He launched a short-lived rebellion on Saturday, capturing the southern city of Rostov and advancing on Moscow while demanding the removal of Russian military leaders responsible for the war in Ukraine.
The army retreated and returned to Ukraine, while their leader, Yevgeny Prigozhin, was exiled to Belarus, but the consequences of the war and Vladimir Putin’s power are yet to be seen.
Brent Crude Oil Futures (CO1:COM) +0.7% to $74.37 a barrel and WTI (CL1: COM) as well +0.7% to $69.67 a barrel, after both benchmarks jumped 1.3% earlier to recoup a bit of last week’s losses.
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US crude oil futures have lost more than 13% so far this year, in part due to the resilience of Russian exports despite Western sanctions stemming from the Ukraine war.
While the recent geopolitical risks could add some short-term support to oil prices, continued concerns about Chinese economic growth and recession risks in the US and elsewhere seem likely to limit any increases.
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