Oil set for biggest weekly gain amid Russia-Ukraine conflict escalation

Oil is on track for its largest weekly gain since early October, driven by escalating hostilities between Russia and Ukraine.

Brent traded above $74 a barrel, up almost 5% for the week, while West Texas Intermediate was near $70, News.Az reports, citing Bloomberg.

The war has rapidly intensified following months of bloody attrition, with Russia launching a ballistic missile after the expanded use of Western-provided long-range weapons by Ukrainian forces.

Oil has swung between weekly gains and losses since mid-October, influenced by the push and pull of various factors from a strong dollar to ample supply. The Kremlin also revamped its nuclear doctrine this week, although Russia’s foreign minister sought to calm worries about a nuclear escalation.

The US, meanwhile, sanctioned Russia’s Gazprombank, closing a loophole that Washington kept open over the course of the war because the lender is key for energy markets. The penalties increase the risk of a cut-off of some of the remaining Russian gas flows to a handful of central European nations.

Still, the oil market faces a sizeable supply glut in 2025, with investors watching for a decision from OPEC+ on plans to revive idled production. That would likely coincide with persistent weak demand from China, as the Asian nation struggles to pull its economy out of a sustained slump.

News.Az