Brent Crude Prices Edge Lower Amid Escalating Russia-Ukraine Tensions

Highlights:

• Brent crude fell 0.7% to US$67.48 at the time of writing, after trading in a narrow US$67–68 range last week.
• Ukraine’s drone strikes on two Russian refineries and Moscow’s retaliation signalled that a ceasefire remains unlikely.
• Weak global demand outlook from China and Europe continues to cap price gains despite ongoing supply risks.

Market Moves

Brent crude oil prices slipped on Monday after a week of narrow trading between US$67 and US$68 per barrel. At the time of writing, Brent crude was down 0.7% to US$67.48, reflecting investor caution as geopolitical risks weigh on market sentiment.

Geopolitical Pressures

The latest price weakness followed fresh developments in the Russia-Ukraine conflict. Ukraine launched drone strikes targeting two Russian refineries, prompting swift retaliation from Moscow. The exchange underscored that prospects for a ceasefire remain slim, heightening uncertainty around global energy supplies.

Supply Risk vs Demand Outlook

Despite the attacks, oil markets have shown relative resilience. Analysts suggest that while supply risks from the conflict persist, broader concerns over global demand and economic growth are also influencing trading patterns. Sluggish demand expectations in key economies, including China and Europe, have capped any upward momentum in crude prices.

Narrow Trading Band

Last week’s tight range between US$67–68 per barrel reflects a market caught between two competing forces: geopolitical instability that could restrict supply, and lingering demand-side worries that limit price gains. Traders remain cautious, balancing short-term risks against longer-term fundamentals.

Investor Outlook

Brent crude hovered just below the US$67.50 level at the time of writing. Market participants are watching closely for further geopolitical developments, OPEC+ production signals, and updates on global economic data. While the Russia-Ukraine conflict has injected fresh volatility into the market, concerns over demand continue to anchor prices.

Conclusion

For now, Brent crude prices remain range-bound, with geopolitical risks providing support but economic headwinds acting as a counterweight. Investors expect volatility to persist as markets weigh both supply disruptions and demand softness in the months ahead.

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