ALBAWABA – Oil prices surged on Monday amid ongoing tensions between Russia and Ukraine. The market is experiencing fluctuations as China, the world’s second-largest oil consumer, showed weak demand for oil. Similarly, gold prices rebounded after a significant decline last week.
Oil prices increase
Brent crude futures increased by approximately 0.3% (20 cents) to $71.24 a barrel, while West Texas Intermediate (WTI) crude futures rose by nearly 0.1% (9 cents) to $67.11 a barrel.
It is worth noting that the surge in oil prices occurred after the Biden administration allowed Ukraine to use US-made weapons in its fight against Russia, according to officials.
Tony Sycamore, IG markets analyst, said: “Biden allowing Ukraine to strike Russian forces around Kursk with long-range missiles might see a geopolitical bid come back into oil as it is an escalation of tensions there, in response to North Korean troops entering the fray.”
Spot gold rose by about 0.4%, reaching $2,571.11 per ounce, while US gold futures gained 0.2%, to reach $2,575.70. (Shutterstock)
"So far there has been little impact on Russian oil exports, but if Ukraine were to target more oil infrastructure that could see oil markets elevate further,” Saul Kavonic, an energy analyst at MST Marquee.
Gold sees weekly gains
Gold prices recorded an increase today following the significant decline that happened last week. Spot gold rose by about 0.4%, reaching $2,571.11 per ounce, while US gold futures gained 0.2%, to reach $2,575.70.
Additionally, diverse precious metals experienced an increase this week. Spot silver rose by 0.6% to reach $30.39 per ounce, platinum increased by 0.6% to $944.57, and palladium rose by nearly 1.7% to $966.66.
