Oil up as geopolitical risks persist in Europe

Oil drilling rigs

Oil prices rose today, Nov. 21, after a negative performance in the previous session, as Ukraine continued to launch attacks deep inside Russia with Western-made weapons despite Moscow’s threat on use nuclear weapons.

International benchmark Brent crude was trading up 0.34% at $73.06 a barrel, at 09:28 am Makkah time. West Texas Intermediate (WTI) crude rose 0.39% to $69.02 a barrel.

Ukraine launched a missile attack on the Russian territory on Nov. 20 using British Storm Shadow cruise missiles, after reports emerged that Washington had allowed Kiev to use American-made weapons to strike Moscow.

This US action led Russia to announce that it would amend its nuclear doctrine, relax the conditions for the use of weapons of mass destruction, and consider the assistance of another nuclear state to Ukraine as joint aggression.

These events caused the geopolitical risk premium in oil and commodity markets to rise again, which in turn pushed up prices.

Oil gains were limited by official data showing that US crude inventories rose by 500,000 barrels last week, compared to expectations of an 800,000-barrel decrease. This is an indication of weak demand for energy in the world's largest economies.