By Adedapo Adesanya
Crude oil prices rose on Monday as traders saw supply tightening due to conflicts in the Middle East and Ukraine, and continued disruption due to extreme North American cold weather.
Brent crude futures were up by 1.83 per cent or $1.83 to $80.40 per barrel while the US West Texas Intermediate (WTI) crude futures grew by 2.92 per cent or $2.14 to $75.55 a barrel.
Geopolitical factors spurred the rise at the week’s opening session as the war between Israel and Hamas in Gaza, the US military battles with Houthi rebels in Yemen, as well as the ongoing Russian invasion of Ukraine, contributed to pushing prices up.
There are no signs of respite in Israel’s offensive in Gaza as they intensified the fighting since the October 7 Hamas attack on Israel, with the Israelis targeting two hospitals and advancing into a coastal district in southern Gaza, Reuters reports.
The intensification of the conflict prompted the European Union’s foreign policy chief, Josep Borrell, to say on Monday that Israel’s goal of destroying Hamas in Gaza was failing and the only way out of this conflict is a peace deal involving a two-state solution.
Meanwhile, attacks by Iran-aligned Houthis on commercial vessels in the Red Sea have continued despite retaliatory measures from the US.
Meanwhile, Russian energy company Novatek has been forced to suspend some operations at its Baltic Sea fuel export terminal because of a fire, it said on Sunday.
It was reported that a drone attack on the Russian fuel export terminal caused the fire that led to the shutdown of operations. The fire has been extinguished, local authorities said on Monday.
Severe cold weather across the US is limiting crude oil output in North Dakota, the third largest oil-producing state, as well as hampering production in other states.
Market analysts say the booming US stock market also points to stronger demand instead of a possible economic downturn.
The benchmark S&P 500 scaled a fresh record high, extending a bull run into a new week on a boost from high-capitalised companies and chip stocks.
Fundamentals, however, continue to keep a lid on rising prices, with higher oil production and a mixed bag in terms of growth outlook subduing the impact of geopolitical developments.
The latest demand growth forecasts by the US Energy Information Administration (EIA), the International Energy Agency (IEA), and the Organisation of the Petroleum Exporting Countries (OPEC) for 2024 range between 1.24 million and 2.25 million barrels per day, though all three organisations expect demand growth to slow in 2025.
Libya’s National Oil Company (NOC) said the production at the Sharara oilfield resumed on Sunday after protesters ended a sit-in that had halted output since early January.
Dipo Olowookere 
Modupe Gbadeyanka