The oil prices continued their rally on Monday as supply shortages and political tensions in Eastern Europe and the Middle East set the barrel on track for its biggest monthly gain in nearly a year.
At 10:30 GMT, crude oil futures Brent they added 77 cents, or 0.86%, to $90.80 a barrel. The contract for delivery in March expires later in the day. The most active Brent futures, for April delivery, were trading at $88.98, up 0.5 percent.
crude oil futures West Texas Intermediate in the United States they were up 59 cents, or 0.68%, at $87.41 a barrel.
Benchmark contracts posted Friday highs not seen since October 2014, at $91.70 and $88.84, respectively, and their sixth consecutive weekly gain. This month, they may close up 17%, the biggest jump since February 2021.
“Today, above all, concerns about supply outages related to the Ukraine crisis are what continue to drive prices higher and higher,” said Carsten Fritsch, a commodities analyst at Commerzbank.
The NATO chief said on Sunday that Europe needs to diversify its energy supplies, while Britain warned that it is “highly likely” that Russia is seeking to invade Ukraine.
Giovanni Staunovo, an analyst at UBS, said that “ongoing geopolitical tensions, more European countries planning to lift restrictions due to Covid-19 and further supply disruptions in Ecuador are supporting oil prices at the start of the week.”
OCP Ecuador, the country’s largest private heavy crude oil pipeline operator, suspended oil pumping on Saturday as a preventive measure after a section of the pipeline ruptured in the Amazon, where it had to start cleanup and repair procedures.