Oil prices have hit a four-month apex after a Ukrainian assault on a Russian naval vessel in the Black Sea, escalating tensions and further destabilising the crucial trade route.
Brent crude has managed to sustain above $86 a barrel, a peak last touched in April, following a maritime drone strike on a Russian oil tanker this Saturday.
The escalating conflict poses a potential risk to Russia’s commodity exports via the Black Sea, a route that facilitates between 15 and 20 percent of the oil Moscow trades daily on the international markets.
Following the attack, wheat prices have also seen an uptick. This comes after Russia’s withdrawal from the Black Sea grain deal that ensured the safe transit of goods through this trade route despite the ongoing conflict in Ukraine.
Oil marked its sixth consecutive weekly rise last week, representing its longest gaining streak since June 2022.
Both Russia and Saudi Arabia continued their supply reductions last week in an attempt to drive up the commodity’s price.
At last look, Brent crude was stable on the day, whereas the U.S.-produced West Texas Intermediate was marginally down by 0.1 percent, hovering just under $83 a barrel.
