Oil prices rise as Putin warns of broadening conflict

Oil drilling rigs

Oil prices rose on Friday after Russian President Vladimir Putin warned of a broadening conflict in Ukraine despite signs of slowing demand and an abundance of crude supply in the US.

Brent crude futures for January delivery increased 0.13%, or $0.10, to $74.33 a barrel, at 9:28 am Makkah time.

Similarly, futures prices for US West Texas Intermediate (WTI) crude rose 0.16%, or $0.11, to $70.21 per barrel.

Putin said Russia responded to the use of US and British missiles by firing a new kind of hypersonic medium-range ballistic missile at a Ukrainian military facility, warning the West that Moscow could retaliate further.

The increase in US crude and gasoline inventories last week limited the rise in oil prices. Analysts anticipate further increase next week.

“We will be expecting a rebound in production as well as US refinery activity next week that will carry negative implications for both crude and key products,” said Jim Ritterbusch of Ritterbusch and Associates in Florida.