Oil on the rise

Oil rose after three days of declines on signs the market is tightening due to sanctions, geopolitical risks and OPEC+ supply cuts. Brent crude rose to $86 a barrel after falling more than 2% in the final three days of last week, while U.S. crude was above $81. Indian refiners, Russia’s biggest customer after China since the 2022 invasion of Ukraine, will no longer accept tankers from state-run Sovcomflot PJSC because of sanctions risks and disrupting flows. Ukraine’s ongoing drone strikes are also crippling Russia’s ability to refine crude. More than 130 people were killed in a terror attack in Moscow over the weekend, which President Vladimir Putin hinted was involved in. Crude is on track for a third monthly gain as OPEC+ continues its production cuts. Although weak Chinese demand weighed on the outlook, Premier Li Qiang said Beijing was stepping up policy support to spur growth and that systemic risks were being addressed. Reflecting the bullish sentiment, money managers’ net long positions on Brent rose to their highest level in more than a year. US Central Command meanwhile said the Iran-backed Houthis fired missiles at the Chinese oil tanker Huang Pu on Saturday, underscoring ongoing risks to shipping in the seas off Yemen. The attack came after the militant group had previously said it would not attack ships coming from China.