Oil prices up due to concerns about Russian supply

Oil prices rose in early Asian trade on Monday after a brief mutiny by Russia’s private military group Wagner at the weekend raised fears of political turmoil in Russia and its potential impact on oil supplies from one of the world’s top producers.

By 2300 GMT, Brent crude futures were up 95 cents, or 1.3 percent, at $74.80 a barrel. West Texas Intermediate crude futures rose 88 cents, or 1.3 percent, to $70.04 a barrel.

According to Reuters, Russia avoided a clash between the leadership in Moscow and Wagner’s chief, Yevgeny Prigozhin, on Saturday, after the heavily armed group withdrew from the city of Rostov in the south of the country under an agreement that halted its rapid advance towards the capital.

But the crisis has raised questions about Russian President Vladimir Putin’s grip on power and concerns about potential disruption to Russian oil supplies.

Analysts at Goldman Sachs said that the markets may take into account the slightly higher possibility that the domestic tension in Russia will lead to supply disruptions or a significant negative impact on the supply of oil in the future.

Brent crude and West Texas Intermediate crude fell by about 3.6 percent in the past week, due to fears that the Federal Reserve (the US central bank) will raise interest rates again, which may undermine demand for oil at a time when the Chinese economic recovery disappointed investors after several months. From the weak data on consumption, production, and the real estate market