The prices of Petroleum took an upward path late in the day on Tuesday, in a market worried about reports of Russian missiles that could have landed on Poland, a country of the NATO.
A barrel of Brent from the North Sea for January delivery thus gained 0.77% to $93.86 in London.
While the West Texas Intermediate (WTI) for December gained 1.22% to $86.92 in New York.
“It is the reaction to the information according to which Russian missiles fell on Poland“explained Andy Lipow of Lipow Oil Associates.
A US intelligence official told the Associated Press on condition of anonymity that Russian missiles killed two people on Polish soil.
Russia unleashed a barrage of missiles on kyiv and other Ukrainian cities on Tuesday.
A Russian attack on Polish territory would mean a major escalation of the conflict in Ukraine, with the risk of widening it.
The Pentagon indicated that it is “investigating” press reports that Russian missiles fell “inside Poland or on the border with Ukraine”.
The Polish government called an emergency meeting of its National Security Council “due to the crisis situation.”
Polandwhich is a member of the Atlantic Alliance (NATO) and shares a border with Ukraine, invaded by Russia on February 24, is home to some 10,000 US troops.
Article 5 of the NATO treaty stipulates that if a member state is the victim of an armed attack, the other countries in the group will consider the act as an armed attack directed at the group of countries. They will be able to take the necessary measures to help the attacked country.
The market “sees that this could lead to a long escalation of hostilities between Russia and NATO,” Lipow explained.
The market was initially lower after the International Energy Agency (IEA) further reduced its forecast for demand growth on Tuesday. Petroleum by “economic headwinds” around the world.
As most of the large economies lowered their growth forecasts for 2023, the demand for Petroleum next year it should grow by 1.6 million barrels per day (mbd), less than the growth of 2.1 mbd in 2022.
The IEA expected an increase of 1.7 mbd in 2023. OPEC also revised downward the increase in demand next year.
