Oil nudges higher as supply worries offset concerns about demand

News Room
  • Oil prices rise slightly for second session
  • Political instability in Russia adds to supply concerns
  • Disappointing Chinese demand looms over investors

June 27 (Reuters) – Oil prices edged higher for a second consecutive session on Tuesday, as worries about political instability in Russia and potential supply disruptions counter-balanced concerns about global demand.

Brent crude futures rose 6 cents to $74.24 a barrel, while U.S. West Texas Intermediate (WTI) futures gained 10 cents to $69.47 a barrel. On Monday, Brent had climbed 0.5% and the WTI 0.3%.

A clash between Moscow and Russian mercenary group Wagner was averted on Saturday after the heavily armed mercenaries withdrew from the southern Russian city of Rostov under a deal that halted their rapid advance on the capital.

The challenge has raised questions about President Vladimir Putin’s grip on power and some concern about possible disruption of Russian oil supply.

Lower supply has already been on investors’ minds due to Saudi Arabia’s pledge to cut output from July.

Oil fell around 3.6% last week on worries that further interest rate hikes by the U.S. Federal Reserve could sap oil demand at a time when China’s economic recovery has disappointed investors.

Reporting by Stephanie Kelly; Editing by Muralikumar Anantharaman

Our Standards: The Thomson Reuters Trust Principles.

Stephanie Kelly

Thomson Reuters

A New-York-based correspondent covering the U.S. crude market and member of the energy team since 2018 covering the oil and fuel markets as well as federal policy around renewable fuels.
Contact: 646-737-4649

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