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Oil Rallies on Robust Demand and Russia-Ukraine Conflict Risk

  • WTI futures settles above $85, Brent closes above $88
  • Wider markets roiled by geopolitical tensions, rate hikes
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Geopolitical Risks Mount in the Oil Market
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Oil prices rallied Tuesday after the biggest one-day tumble this year, with traders refocusing on the outlook for strong demand and the risk that a Russia-Ukraine conflict could disrupt supplies.

West Texas Intermediate futures settled above $85 a barrel as fears about fresh lockdowns and a hit to global demand due to the omicron variant eased. Prices have whipsawed as the U.S. Federal Reserve prepares for interest-rate increases, hammering equity markets, while Russia builds troops along the border with Ukraine, prompting supply jitters in Europe.