Crude oil price surges to $85.67 amid supply concerns

The price of Brent crude oil surged to $85.67 and the West Texas Intermediate crude rose to $80.88 per barrel, according to Reuters.

The rise is attributed to concerns over tighter global supply brought about by escalating conflict in the Middle East and between Russia and Ukraine. The shrinking U.S. rig count added to upward price pressure.

President of NS Trading, a unit of Nissan Securities, Hiroyuki Kikukawa, said: “Escalating geopolitical tension, coupled with a rise in attacks on energy facilities in Russia and Ukraine, alongside receding ceasefire hopes in the Middle East, raised concern over global oil supply.

“Falling U.S. rig count also increased worry over tighter supply,” Reuters reported that Russia struck critical infrastructure in Ukraine’s western region of Lviv with missiles early on Sunday, according to Kyiv. It was a significant air strike that saw one Russian cruise missile briefly fly into Polish airspace, according to Warsaw.”

Meanwhile, Nigeria’s Bonny Light traded at $87.46 a barrel late Friday.