New York (TDI): Oil prices climbed more than $1 on Monday as traders weighed potential supply disruptions in the Middle East and rising geopolitical tensions following Russia’s claims of a drone attack on President Vladimir Putin’s residence.
Brent crude futures rose $1, or 1.7%, to $61.64 a barrel by 1818 GMT, while US West Texas Intermediate (WTI) crude gained $1.10, or 1.9%, reaching $57.84, according to Reuters.
“The market’s focus has shifted toward the Middle East, where fresh instability, including Saudi airstrikes in Yemen, is keeping supply-disruption concerns alive,” said Gelber & Associates in a note.
The Saudi-led coalition in Yemen warned that any military action by the Southern Transitional Council (STC) in Hadramout province undermining de-escalation efforts would be countered to protect civilians, Saudi media reported.
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Fighting on Thursday reportedly killed two members of the STC’s Hadhrami Elite Forces, and Saudi airstrikes targeted their positions early Friday.
Meanwhile, Moscow accused Ukraine of attempting a drone attack on Putin’s northern residence, prompting Russia to reconsider its position in peace negotiations. Ukraine dismissed the claims, with its foreign minister saying Russia was seeking “false justifications” for further attacks.
Earlier Monday, Ukrainian President Volodymyr Zelenskiy said progress had been made in discussions with US President Donald Trump, with teams from both countries set to meet next week to finalize plans aimed at ending the conflict. Trump also spoke positively with Putin about the war, according to White House spokeswoman Karoline Leavitt.
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Investors are also awaiting delayed US inventory data for the week ending December 19, which could provide further direction for oil prices. Early projections indicate a fall in crude stockpiles, alongside rises in distillate and gasoline inventories.
