Oil up over supply tightness amid tensions in Eastern Europe, Middle East

By Ebru Sengul Cevrioglu

ANKARA (AA) - Oil prices were up on Monday, as tensions in Eastern Europe and the Middle East fueled supply worries in an already-tight market due to the failure of the OPEC+ group to meet its collective output target.

International benchmark Brent crude was trading at $87.82 per barrel at 0555 GMT for a 0.85% increase after closing the previous session at $87.08 a barrel.

American benchmark West Texas Intermediate (WTI) was at $85.83 per barrel at the same time for a 0.81% rise after trade in the previous session ended at $85.14 a barrel.

The US on Sunday officially ordered the “departure of eligible family members” of staff at its embassy in Kyiv, Ukraine amid ongoing tensions between Ukraine and Russia.

The security situation around “Ukraine’s borders, in Russia-occupied Crimea, and Russia-controlled eastern Ukraine are unpredictable and can deteriorate with little notice,” said the statement, adding there are reports that Russia is planning “significant military action against Ukraine.”

Meanwhile, two foreigners were injured after Houthi rebels fired a ballistic missile that landed in southwestern Saudi Arabia, the Saudi-led coalition fighting in Yemen said Sunday.

The Arab League on Sunday called for classifying Yemen’s Houthi rebel group as a terrorist organization.

Global oil markets have seen negative market sentiments from these geopolitical tensions, coupled with the failure of OPEC producers to meet their monthly quotas under the OPEC+ deal with Russia and its allies to add 400,000 barrels per day.

Additionally, the oil rig count in the US fell last week, adding to supply worries during the winter heating season. According to the latest data released by oilfield services company Baker Hughes on Friday, the number of oil rigs, an indicator of short-term production in the country, decreased by 1 to 491 for the week ending Jan. 21 from 492 the previous week.