Brent crude oil surged past $87 on Monday as Russia’s war on Ukraine increasingly focuses on attacks on energy installations, and as mediation in the Israel-Gaza conflict fails. On Monday at 1014 a.m. ET, Brent crude was trading at $87.16, up 2.03%, for a 1.72-cent gain on the day. The U.S. crude oil benchmark, West Texas Intermediate WTI, was trading at $82.45, up 2.26%, for a $1.82 gain on the day.
Ukraine’s largest energy producer, is running at 50% capacity, forcing it to suspend electricity exports, according to Ukraine’s energy ministry. In the Middle East, hopes are now fading, again, for a ceasefire deal as Israel continues with its assault on Gaza. Also on Monday, Goldman Sachs said commodity demand would increase this year, driven by interest rate cuts by central banks, with potential returns as high as 15%. By Charles Kennedy for Oilprice.