Amid concerns about oil supplies navigating the Black Sea, oil prices soared to their peak in almost nine months.
Brent crude, the global standard, rose 0.8% today, nearing $87 per barrel, while the US-based West Texas Intermediate increased by 0.9%, surpassing $83.
The latter has surpassed its previous high for this year set in April, marking its top level since November 2022.
The spotlight has intensified on potential disruptions to Russian oil shipments from the Black Sea, following Ukrainian President Volodymyr Zelenskiy’s statement of potential retaliation against Moscow’s attempts to “block our waters.”
This comes after a Ukrainian drone targeted an oil tanker over the past weekend.
The atmosphere in the region has grown tense since Russia’s exit from the Black Sea grain accord, which ensured safe transit for ships via this critical trading corridor.
Since late June, there’s been a steady increase in oil prices. This week, UK drivers experienced the most significant weekly surge in fuel costs in over a year.
Ole Hansen, the chief commodities strategist at Saxo Bank, commented, “Persisting threats to Russian oil exports due to Black Sea tensions are evident.
The generally positive trend remains solid even with growing concerns about the Chinese economic outlook.
