Oil closes higher amid geopolitical tensions in Middle East

Oil drilling rigs

Oil closed higher today, Feb. 5, amid escalating geopolitical tensions following the launch of US forces attacks against the Houthis over the weekend. However, expectations that monetary tightening would continue for a longer period than expected limited oil gains.

Brent crude rose 0.85%, or 66 cents, to settle at $77.99 per barrel, after touching $76.62 during trading.

WTI crude increased by 0.7%, or 50 cents, to $72.78 per barrel, after an earlier decline to $71.41.

Vicki Hollub, CEO of Occidental Petroleum, said that the oil market will face a supply shortage by the end of 2025, because the world is not replacing crude reserves quickly enough.

According to the Russian Ministry of Finance, the federal budget in February is expected to receive additional oil and gas revenues of about 195.4 billion rubles ($2.14 billion), TASS reported.