Oil prices rise with escalating tensions between Russia and Ukraine and a decrease in Saudi supplies.

Crude oil prices rose during trading today, Tuesday, amid increasing concerns about global supply shortages, especially after escalating geopolitical tensions between Russia and Ukraine. Markets experienced a state of anxiety following an attack by a Ukrainian drone on a pumping station in one of the Russian pipeline lines, which disrupted oil flows coming from Kazakhstan.

Global oil prices record gains amid sharp fluctuations

U.S. crude oil futures recorded an increase of 0.19%, reaching $71.46 per barrel, while Brent crude rose by 0.25% to reach $75.45 per barrel. This rise was driven by increasing concerns about the impact of Russian-Ukrainian tensions on oil supplies, with expectations of further market disruptions in the upcoming period.

Decline in Saudi exports supports crude oil prices

In addition to the Russian crisis, the decline in Saudi oil exports has supported prices, as data from the Joint Organizations Data Initiative (JODI) showed that the Kingdom's oil production fell by about 20,000 barrels per day in December to reach 8.905 million barrels per day. Saudi oil exports also decreased by 60,000 barrels per day, recording 6.146 million barrels per day. This decline is part of Saudi efforts to maintain market balance and support price levels amid the challenges facing the global energy market.

Mixed performance of energy futures amid market anticipation

Other energy contracts showed mixed performance, with heating oil futures declining by 0.04% to reach $2.4608 per gallon, while gasoline contracts increased by 0.10%, recording $2.0920 per gallon. In terms of natural gas, contracts declined by 0.13%, with the price reaching $3.722 per million British thermal units, amidst a state of anticipation regarding market movements under these new developments.

Geopolitical tensions overshadow global oil market forecasts

As the escalation between Russia and Ukraine continues, investors are awaiting developments in the geopolitical scene and their impact on oil supplies in global markets. Expectations regarding oil prices remain unclear, as the future direction of prices depends on the extent of ongoing geopolitical tensions, in addition to OPEC+ policies regarding production in the upcoming period.

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