Brent crude is a major trading classification of crude oil originating from the North Sea. It serves as a benchmark for oil prices globally and is used to price two-thirds of the world's crude oil supplies.

What is West Texas Intermediate (WTI)?

West Texas Intermediate (WTI) is a grade of crude oil used as a benchmark in oil pricing. It is sourced from the U.S. and is known for its high quality and low sulfur content.

Oil demand refers to the total quantity of oil that consumers and industries require over a specific period. It is influenced by factors such as economic growth, energy policies, and seasonal changes.

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Oil rises as geopolitics counter demand concerns

Published by Jessica Weisman-Pitts

Posted on January 22, 2024

2 min read

Last updated: January 31, 2026

Oil price increase amidst geopolitical tensions affecting supply - Global Banking & Finance Review — This image illustrates the rising oil prices influenced by geopolitical factors, including conflicts in the Middle East and Ukraine, as discussed in the article. It highlights the complex interplay of supply and demand in the global oil market.

Oil rises as geopolitics counter demand concerns

By Natalie Grover

LONDON (Reuters) -Oil prices rose on Monday as traders weighed the impact of wars in the Middle East and Ukraine on oil supply against economic headwinds dampening global oil demand.

Brent crude rose 90 cents to $79.46 a barrel by 1450 GMT.

The front-month U.S. West Texas Intermediate crude futures contract for February delivery was up $1.10 at $74.42 a barrel in tepid trade, with the contract set to expire on Monday. The more active March WTI contract was up 91 cents at $74.16.

“While oil prices have firmed up a little, it is strange that they have not risen further, given the rising geopolitical tensions in the Middle East,” said Gary Dugan, chief investment officer at Dalma Capital.

“Part of the reason why oil prices have remained in check could be the market’s anticipation that global growth is slowing.

There are no signs of respite in Israel’s offensive in Gaza while attacks by Iran-aligned Houthis on commercial vessels in the Red Sea have continued despite retaliatory measures from the United States.

Meanwhile, Russian energy company Novatek has been forced to suspend some operations at its Baltic Sea fuel export terminal because of a fire, it said on Sunday, which Ukrainian media said was caused by a drone attack. The fire has been extinguished, local authorities said on Monday.

Oil fundamentals could continue to drag on prices, according to IG analyst Tony Sycamore.

Oil production is higher while the growth outlook in China and Europe is mixed and GDP data this week is expected to show growth of the U.S. economy has slowed considerably, he said.

“Investors want to be bullish, but tepid data and a cautious narrative from policymakers keep them on the back foot,” said Tamas Varga of oil broker PVM.

The latest demand growth forecasts by the U.S. Energy Information Administration, the International Energy Agency and the Organization of the Petroleum Exporting Countries for 2024 are in a wide range between 1.24 million and 2.25 million barrels per day, though all three organisations expect demand growth to slow in 2025. [EIA/M] [IEA/M] [OPEC/M]

Separately, production at Libya’s Sharara oilfield resumed on Sunday, state oil company NOC said, after protesters ended a sit-in that had halted output since early January.

(Reporting by Natalie Grover, Noah Browning, Mohi Narayan and Florence TanEditing by David Goodman and Jane Merriman)

Oil rises as geopolitics counter demand concerns

Oil rises as geopolitics counter demand concerns

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