Oil prices inched up in early Asia trade on Tuesday, as fears over political unrest in Russia and potential supply disruptions helped to offset worries about global demand.
Brent crude futures rose 34 cents to $74.52 a barrel, while U.S. West Texas Intermediate (WTI) futures gained 37 cents to $69.74 a barrel as of 10.29 A.M. Bangkok time.
Although the weekend’s dramatic events in Russia have ended, they add more uncertainty to an oil market already struggling with worries about the future for demand, particularly from China.
Russian President Vladimir Putin called the Wagner mercenary group’s leaders “traitors,” but his remarks shed no light on what happened over the weekend or to mutiny leader Yevgeny Prigozhin. The price of oil worldwide would be affected by any extended unrest.
Investors have been anticipating a lower supply since Saudi Arabia announced it would begin cutting production in July.
Concerns that the Federal Reserve’s plans to raise interest rates could reduce demand for oil came into play last week, sending the price of oil down by about 3.6%.