Oil Prices Surge on Ukraine War Fears

22 Nov 2024 , 10:29 AM

Friday saw a spike in oil prices as Russia threatened to constrict petroleum supply after claiming to have fired a ballistic missile at Ukraine and warning of a wider conflict.

Brent crude futures were up 14 cents, or 0.2%, to $74.37 a barrel. At $70.27 a barrel, U.S. West Texas Intermediate crude futures increased 17 cents, or 0.2%.

After the United States and Britain permitted Ukraine to use their weapons against Russia, Russian President Vladimir Putin declared on Thursday that the war in Ukraine was becoming a worldwide struggle.

Putin warned the West that Moscow might launch further retaliatory strikes after claiming that Russia used a new type of hypersonic medium-range ballistic missile at a Ukrainian military installation in response to the use of American and British missiles.

Following approval by President Joe Biden’s administration, Ukraine launched six American-made ATACMS missiles against Russia on November 19 and American-made HIMARS and Storm Shadow missiles on November 21, according to Putin.

Even though its output has decreased as a result of OPEC+ producer group supply limitations and import bans linked to its invasion of Ukraine, Russia remains one of the world’s leading producers of crude oil. This month, Russia claimed to generate almost 9 million barrels of oil per day.

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