Oil edged higher as a weaker dollar made the commodity more attractive to importers, with the market so far shrugging off the dramatic but short-lived rebellion in Russia.
Calm returned to Moscow after the end of the uprising led by Wagner Group chief Yevgeny Prigozhin, with investors waiting to see if it foreshadowed the potential for more turmoil in Russia. Although the country is a major OPEC+ producer, oil prices were not affected by the riot.
“There’s very little reaction and not a lot of disruption,” S&P Global Inc. Vice President Daniel Yergin said at a conference in Kuala Lumpur. “What’s driving oil markets right now is economics, not geopolitics.”
Goldman Sachs Group Inc. he also said that the impact of the revolt on oil prices may be limited because the point fundamentals have not changed. However, RBC Capital Markets said the risk of further civil unrest “must be factored into our analysis of oil”.
Oil has fallen about 13% this year, partly due to robust exports from Russia, but also due to monetary tightening in the US and a lackluster economic recovery in China. China’s economy continues to show signs of losing momentum, as recent data showed a decline in spending on everything from holiday travel to cars and homes.
Prices:
- August WTI rose 21 cents to settle at $69.37 a barrel in New York.
- Brent for August settlement was up 33 cents at $74.18 a barrel.
