On March 5, 2019, a flare tower burned outside an oil storage tank at the Taneco refining and petrochemical complex (operated by Tatneft PJSC) in Nizhnekamsk, Tatarstan, Russia.
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Oil prices rose to their highest level since October on Tuesday as investors closely watched new supply threats as conflict in the Middle East escalated and Ukrainian drones attacked a major Russian refinery.
USA West Texas Intermediate Crude Oil Contract The price of crude oil futures for May delivery rose by US$1.44, or 1.72%, to close at US$85.15 per barrel.this Brent The June delivery contract rose $1.53 to $88.94 a barrel, an increase of 1.75%.
Brent crude oil futures have largely been trading in a tight range between $75 and $85 a barrel since the start of the year, but geopolitical risks have intensified, strong economic data Seems to be pushing prices higher.
“In a new week, a new month and a new quarter, tensions in the Middle East continue to escalate, and Iran is also indirectly involved,” Tamas Varga, an analyst at oil broker PVM, said in a research report released on Tuesday.
OPEC member Iran accused Israel of carrying out a deadly airstrike on its consulate in the Syrian capital Damascus on Monday. It is said Killed seven officers.
Tehran on Tuesday pledged retaliation for the attack, seen as a major escalation in Israel’s war with Hamas. According to Sky News, Israel has not declared responsibility and a government spokesman said it would not comment on foreign media reports.
PVM’s Varga warned that the possibility of Iran’s direct involvement in Israel’s war with Hamas could trigger a “region-wide conflict with possible consequences for oil supplies.”
On Tuesday, Ukraine launched a drone strike targeting one of Russia’s largest oil refineries in the highly industrialized Tatarstan region southeast of Moscow, about 1,300 kilometers (800 miles) from the conflict frontline.
President of the Republic of Tatarstan Rustam Minnikhanov said in a statement Google Translate post on Telegram Industrial sites in the towns of Nizhnekamsk and Yelabuga have been targeted by drones.
“No serious damage was caused and the enterprise’s technical processes were not disrupted,” Minnikhanov said.
Russia is an influential member of the Organization of the Petroleum Exporting Countries and its allies, collectively known as OPEC+, and has been under pressure There have been a series of drone attacks in Ukraine in recent months and has been committed to Upgrade your attacks Ukraine’s energy infrastructure.
—CNBC’s Elliot Smith and Spencer Kimball contributed to this report.
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