Oil Rises on Supply Concerns

Oil Rises on Supply Concerns
Oil Rises on Supply Concerns

Oil prices rose on Monday after a revolt by Russian mercenaries over the weekend raised concerns about political instability in Russia and the potential impact on oil supply from one of the world's largest producers.
Brent crude futures were up 56 cents, or 0.8% at $74.41 a barrel, Reuters reported.
WTI was up 44 cents, or 0.6%, at $69.44. Both benchmarks gained as much as 1.3% in early Asian trade.
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.
However, the challenge has raised questions about Russian President Vladimir Putin's grip on power and concerns about possible disruption of Russian oil supply.
Consultancy Rystad Energy said in a note late on Sunday that it did not expect to see a significant increase in oil prices as a result of the "short-lived event".
"We do, however, believe that the geopolitical risk amid internal instability in Russia has increased," Rystad added.
RBC Capital Markets analyst Helima Croft said there were concerns that Putin would declare martial law, preventing staff at loading ports and energy facilities from reporting for work, potentially halting millions of barrels of exports.

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