Oil prices rise on supply fears amid tensions in Eastern Europe, Middle East

Crude oil futures

Brent Oil  was trading 0.68% up at  $87.66.

Oil prices rose on Monday on worries about supply disruption amid rising tensions in Eastern Europe and the Middle East, which could make an already tight market even tighter, while OPEC and its allies continued to struggle to raise output.

 Crude oil futures rose 81 cents, or 0.9%, to $88.70 a barrel by 0344 GMT, reversing a 0.6% loss on Friday.

U.S. West Texas Intermediate (WTI) crude futures gained 72 cents, or 0.9%, to $85.86 a barrel, having fallen 0.5% on Friday.

Both benchmarks rose for a fifth week in a row last week, gaining around 2% to hit their highest since October 2014. Prices are already up more than 10% this year on the concerns over tightening supplies.

“Investors remained bullish due to geopolitical risk between Russia and Ukraine as well as in the Middle East, while OPEC+ continued to fail to reach its output target,” said Kazuhiko Saito, chief analyst at Fujitomi Securities Co Ltd.

Fuelling fears of supply disruption in Eastern Europe, the United States on Sunday ordered the departure of family members of staff at its embassy in Ukraine, citing the continuing threat of military action from Russia.

The New York Times reported late Sunday that U.S. President Joe Biden was considering deploying several thousand U.S. troops to NATO allies in Eastern Europe and the Baltics.

Russia will face severe economic sanctions if it installs a puppet regime in Ukraine, a senior British government minister said on Sunday, after Britain accused the Kremlin of seeking to place a pro-Russian leader in power there.

In the Middle East, the United Arab Emirates’ defence ministry said it destroyed two Houthi ballistic missiles targeting the Gulf country on Monday, with no casualties, the state news agency (WAM) reported.

The OPEC+, which groups the Organization of the Petroleum Exporting Countries (OPEC) with Russia and other producers, is struggling to hit its monthly output increase target of 400,000 barrels per day (bpd).

OPEC+ compliance with long-installed oil production cuts rose to about 122% in December, two sources from the producer group told Reuters, indicating that some members continue to struggle to raise their output.

RSI Stood at 70.400, the current price is trading Above  the Moving Averages  20 & 50  . So, a  Buy trade can be executed with the following target and stop-loss:

TRADE SIGNAL-Brent OilBuy: 87.20, TARGET:-93.20, STOP LOSS:- 84.20.

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