Crude Higher Again Buoyed By Conflicts & Weaker USD

After falling moderately on Friday, oil prices have trended higher again today driven by events related to Russia. Brent broke through $86 earlier but couldn’t sustain the move and is now up 0.6% to $85.92/bbl. WTI has rallied above $81 to be up 0.6% at $81.14/bbl, after an intraday high of $81.28. Crude has been supported by a weaker US dollar. The USD index fell 0.2% but is now down 0.1%.

• The focus is on Russia with Friday’s terrorist attack in Moscow, the energy sector targeted by Ukrainian drones and sanctions impacting energy exports. Drone strikes are estimated to have taken around 12% of refining capacity offline.
• India has said that it won’t take Russian oil on state-run Sovcomflot tankers because of sanctions. India has become the second largest buyer of Russian crude after China since Russia invaded Ukraine. Commentators are noting that sanctions are now impacting Russian exports and raising shipping costs.
• Iran-backed Houthis fired a missile at a Chinese-owned oil tanker sailing in the Red Sea on Saturday.
• Conditions around crude remain bullish and money managers’ net long positions are at their highest in over a year, according to Bloomberg.
• Later the Fed’s Bostic, Goolsbee and Cook speak and the Chicago & Dallas Fed indices are released as well as February new home sales. BoE’s Mann also appears.