Oil increases on worries Politics in Russia could have an impact on supply

26 Jun 2023 , 11:36 AM

After a failed mutiny by Russian mercenaries over the weekend stoked worries about political instability in Russia and the potential impact on oil production from one of the biggest producers in the world, oil prices increased in early Asian trade on Monday.

Brent crude futures were up 95 cents, or 1.3%, to $74.80 per barrel. American West Texas Intermediate (WTI) crude was up 88 cents or 1.3% at $70.04 a barrel.

Wagner, a group of heavily armed Russian mercenaries, retreated from Rostov on Saturday as part of an agreement that halted their quick advance on the capital, preventing a showdown between Moscow and the mercenaries.

However, the conflict has sparked doubts about Vladimir Putin’s hold on power and worries about a potential disruption of the country’s oil supplies.

Both Brent and WTI decreased by about 3.6% last week due to concerns that further interest rate increases by the U.S. Federal Reserve might reduce demand for oil at a time when investors have also been let down by China’s economic recovery as a result of several months of weaker-than-anticipated consumption, production, and real estate market data.

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