Oil prices rose on Tuesday on concerns about tightening European supply after Russia cut gas supply through a major pipeline. Moreover, Hiroyuki Kikukawa, general manager of research at Nissan Securities, said, “Higher gas prices, triggered by Russia’s gas squeeze, could lead to additional switching to crude from gas and support oil prices.”
Global oil consumption has outperformed its supply since mid-2020, which, combined with the Russian invasion, has increased concerns about a tighter global supply, thereby putting upward pressure on oil prices. The Brent price is expected to average at $104/b this year.
