Oil fluctuated between small gains and minor losses on Monday following a turbulent weekend in which mercenaries launched a short-lived rebellion against the Russian government.
West Texas Intermediate, the U.S. benchmark, returned to a price a little over $69 per barrel having slipped 0.7% earlier in the day. Brent crude, the international benchmark, also experienced minor turbulence.
“There is very little reaction and not much disruption,” S&P Global Inc. Vice Chairman Daniel Yergin said of the effects of the Russian conflict on oil. “The thing that is dominating the oil markets right now is economics, not geopolitics.”
Since the start of the year, oil in New York has fallen by about 13%. In addition to monetary tightening in the U.S. and a stagnating economic recovery in China, Russia’s falling exports also affected oil prices.
Goldman Sachs observed that the Russian uprising may have had a limited impact on oil prices seeing as spot fundamentals remain unchanged. Still, RBC Capital Markets stated that the potential further unrest must be factored into their oil analysis.