Brent crude oil futures surged above $71 per barrel on Monday, reversing a recent decline, as the intensifying Russia-Ukraine conflict sparked concerns over potential supply disruptions.
Brent rises on escalating Russia-Ukraine conflict
Over the weekend, Russia launched its largest airstrike on Ukraine in nearly three months, further damaging an already strained energy infrastructure. International allies are reportedly urging Ukrainian President Volodymyr Zelenskyy to explore new strategies for engaging Russian President Vladimir Putin in peace talks.
Sentiment hit by Chinese weaker demand
At the same time, weaker demand in China, the world’s largest oil importer, and forecasts for a global oil surplus have dampened market sentiment. Investors are also closely monitoring the pace and scale of expected U.S. Federal Reserve interest rate cuts, contributing to increased uncertainty in global financial markets.
