The Magazine for Asian Investors
Crude oil futures closed nearly 3% higher Tuesday (Jan. 25), driven by tensions between Russia and North Atlantic Treaty Organization (NATO) allies that could affect global oil supplies. Additionally, there were nationwide power outages in Kazakhstan, Kyrgyzstan, and Uzbekistan.
- WTI crude futures were up $2.29, or 2.8%, at $85.60 a barrel.
- BRENT crude futures were up $1.93, or 2.2%, at $88.20 a barrel.
Crude oil futures rose on signs of escalating tensions between Russia and NATO allies. To reassure NATO, the U.S. Army has placed about 8,500 troops on standby, ready to be deployed to Europe soon if needed.
Oil markets were also supported by tensions in the Middle East. After Houthi rebels used drones and missiles to attack Abu Dhabi National Oil Company (ADNOC) fuel depots and construction sites near Abu Dhabi International Airport.
Meanwhile, power outages occurred in Kazakhstan, Kyrgyzstan, and Uzbekistan due to a fault in the mainline in Kazakhstan. The blackout caused chaos in the region for several hours.
Meanwhile, the API crude oil inventory report showed that crude oil inventory declined by 872k last week. Previously, the inventory had increased by 1.4M barrels. Today, the official figures of the EIA will be published.
The Spot Market is Open
Wednesday, January 26, 2022