Crude Falls, Geopolitical Risks Loom

19 Nov 2024 , 10:06 AM

Following a surge in oil prices the day before due to a halt in production at Norway’s Johan Sverdrup oilfield, investors were cautious on Tuesday due to concerns over a possible escalation in the conflict between Russia and Ukraine.

U.S. West Texas Intermediate crude futures for December delivery were down 7 cents, or 0.1%, to $69.23 a barrel, while Brent crude futures for January delivery had dropped 7 cents, or 0.1%, to $73.37 a barrel.

On Monday, both benchmarks increased by almost $2 per barrel.

Ukraine’s power system was severely damaged on Sunday when Russia launched its biggest airstrike in nearly three months.

News reports claimed on Sunday that President Joe Biden’s administration let Ukraine to deploy U.S.-made weapons to strike deep into Russia, marking a significant change of Washington’s policy.

Having previously warned that such a choice would increase the possibility of a confrontation with the U.S.-led NATO alliance, the Kremlin said Monday that Russia would respond to what it described as a foolish decision by the Biden administration.

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