Brent crude oil fluctuated near $94 per barrel on Wednesday as geopolitical concerns rattled markets after a Russian-made missile hit Polish territory and killed two civilians.
Polish President Andrzej Duda said his government still doesn’t conclusively know who fired the missile and added that it was an isolated incident. The potential for a wider conflict in Europe threatens to exacerbate a tightening supply outlook in the oil market, with the European Union set to ban Russian crude flows from December.
OPEC also trimmed its global oil demand growth forecasts for 2022 and 2023 again, citing mounting economic challenges such as high inflation, rising interest rates, and supply chain disruptions.
Meanwhile, concerns about a global economic slowdown as major central banks tighten policy further and Covid-related uncertainties in top crude importer China kept a lid on oil prices.
While The dollar index steadied around 106.5 on Wednesday, remaining supported by haven demand amid fears of a wider conflict in Europe after a Russian-made missile hit Polish territory and killed two civilians. However, Polish President Andrzej Duda said his government still doesn’t conclusively know who fired the missile while US President Joe Biden said the rocket was unlikely to have been fired from Russia.