# Oil prices rise on supply disruption jitters as geopolitical tensions grow
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-01-25
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Oil prices climb on concerns over global supply disruptions
Meta Description: Stay updated on the latest oil price trends amid global supply concerns and geopolitical risks. Expert analysis by Chiyoki Chen and market insights.
URL: https://financedigest.com/oil-prices-rise-on-supply-disruption-jitters-as-geopolitical-tensions-growhtml

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By Yuka Obayashi

TOKYO (Reuters) – Oil prices climbed on Tuesday, regaining some of the ground lost in the previous day’s sharp losses, on concerns over possible supply disruptions amid rising geopolitical tensions in both Eastern Europe and the Middle East.

Brent crude futures rose 48 cents, or 0.6%, to $86.75 a barrel at 0116 GMT, reversing a 1.8% fall in the previous session.

U.S. West Texas Intermediate (WTI) crude futures climbed 34 cents, or 0.4%, to $83.65 a barrel, having slid 2.2% on Monday.

[Oil prices](https://www.financedigest.com/oil-ticks-up-as-u-s-inflation-cools-but-prices-set-for-monthly-drop.html "Oil ticks up as U.S. inflation cools, but prices set for monthly drop") reached seven-year highs last week, bolstered by tight worldwide supply and resurgent global demand.

The [market tone stays](https://www.financedigest.com/dollar-rebounds-as-brainard-assures-markets-fed-will-stay-the-course.html "Dollar rebounds as Brainard assures markets Fed will stay the course") strong, supported by heightening geopolitical risk,” said Chiyoki Chen, chief analyst at Sunward Trading.

We saw profit-taking on Monday when the [prices moved higher and as Wall Street temporarily sank amid concerns](https://www.financedigest.com/shares-fall-with-oil-prices-amid-concerns-about-u-s-fed-rate-hikes.html "Shares fall with oil prices amid concerns about U.S. Fed rate hikes") over the U.S. Federal Reserve’s policy to reduce economic stimulus, but [buying appetite for oil](https://www.financedigest.com/indias-reliance-makes-rare-buy-of-russian-naphtha-ups-fuel-oil-imports.html "India’s Reliance makes rare buy of Russian naphtha, ups fuel oil imports") remained solid,” he said.

A tumultuous day on Wall Street saw stocks end higher after posting heavy losses earlier in the day, as uncertainty over the [rising geopolitical tensions and Fed policy boosted](https://www.financedigest.com/mercedes-posts-rise-in-q1-sales-boosted-by-evs-premium-cars.html "Mercedes posts rise in Q1 sales boosted by EVs, premium cars") safe havens. \[MKTS/GLOB\]

[NATO said on Monday it was putting forces](https://www.financedigest.com/britain-says-it-is-committed-to-leading-a-nato-task-force-in-2024.html "Britain says it is committed to leading a NATO task force in 2024") on standby and reinforcing eastern Europe with more ships and fighter jets, in what Russia denounced as Western “hysteria” in response to its build-up of troops on the Ukraine border.

In the Middle East, Yemen’s Houthi movement, aligned with Iran, launched a missile [attack at the United](https://www.financedigest.com/united-bulgarian-bank-selects-onespan-to-help-fight-social-engineering-and-mobile-malware-attacks.html "United Bulgarian Bank Selects OneSpan to Help Fight Social Engineering and Mobile Malware Attacks") Arab Emirates on Monday that targeted a base hosting the U.S. military, but was thwarted by U.S.-built Patriot interceptors, U.S. and Emirati officials said.

Meanwhile, lower U.S. oil inventories are also providing support, with crude inventories around the NYMEX WTI delivery point at Cushing in Oklahoma at the lowest for the [time of year since](https://www.financedigest.com/euro-zone-economy-sentiment-rises-in-dec-first-time-since-start-of-ukraine-war.html "Euro zone economy sentiment rises in Dec, first time since start of Ukraine war") 2012.

Portfolio [investors added to their bullish positions in oil](https://www.financedigest.com/oil-prices-steady-as-news-of-saudi-russia-meeting-calms-investors.html "Oil prices steady as news of Saudi, Russia meeting calms investors") for the fifth week running, as the worst of the latest wave of coronavirus infections passed and governments began to lift restrictions on business and travel.

(Reporting by Yuka Obayashi; Editing by Kenneth Maxwell)


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