Oil up over market cautiousness after attempted armed rebellion in Russia

By Sibel Morrow

ANKARA (AA) – Oil prices were mostly steady on Tuesday as investors focused on the probable results of an “attempted armed rebellion” against the Russian government by the Wagner Group, while also seeking direction from economic data from the US, the world’s largest oil consumer.

International benchmark Brent crude traded at $74.83 per barrel at 11.39 a.m. local time (0739GMT), a 0.64% gain from the closing price of $74.35 a barrel in the previous trading session on Monday.

The American benchmark West Texas Intermediate (WTI) traded at the same time at $69.92 per barrel, up 0.80% from the previous session's close of $69.37 per barrel.

Both benchmarks kept their earlier gains on a mostly steady track, with investors weighing the risks in the aftermath of the Russian private paramilitary company, Wagner Group's attempted rebellion against Moscow on June 24.

Although the attempt did not disrupt Russian oil production or supply, markets continue to price the risks and possible consequences of the Wagner Group’s rebellion.

While uncertainties regarding the central banks’ monetary policies, especially the US Federal Reserve (Fed), persist, investors are keeping tabs on statements by the Fed officials and the upcoming economic data in the US.

The Fed is scheduled to release the outcomes of its annual bank health assessments on Wednesday. The "stress test" exercise pits banks' balance sheets against a fictitious catastrophic economic slump.

Investors are also watching data on US crude oil inventories, which provide a short-term outlook for the country's oil demand.

The American Petroleum Institute (API) is scheduled to announce its estimates on the stockpiles late Wednesday, while the US Energy Information Administration (EIA) will release the actual data.

However, price downturns were restrained after the Chinese government announced its continued support for the Chinese economy.

On Tuesday, Chinese Premier Li Qiang said his country is still on track to meet its annual growth target of around 5%.

“From what we see this year, China’s economy shows a clear momentum of rebound and improvement,” Li said, adding that growth in the second quarter is expected to be faster than in the first.

- Weak dollar aids price increases

Dollar-indexed oil prices came under upward pressure from the declining value of the greenback.

The US dollar index, which measures the value of the American dollar against a basket of currencies, including the Japanese yen, British pound, Canadian dollar, Swedish krona, and Swiss franc, fell 0.12% to 102.2.