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Oil Prices Rose On Friday After Russia Launched A Ballistic Missile At Ukraine. This Move Signals An Intensifying Conflict. As A Result, Concerns Over Tightening Crude Oil Supplies Have Increased. Brent Crude Futures Gained 14 Cents, Or 0.2%, To $74.37 A Barrel By 0007 GMT. U.S. West Texas Intermediate Crude Futures Rose By 17 Cents, Or 0.2%, To $70.27 Per Barrel.

Ukraine War And Crude Oil Supplies

Russian President Vladimir Putin Warned That The Ukraine War Is Escalating Into A Global Conflict. This Is Mainly Due To The U.S. And Britain Allowing Ukraine To Strike Russia With Their Weapons. Putin Claimed That Russia Responded By Launching A New Hypersonic Medium-range Ballistic Missile At A Ukrainian Military Facility.

Ukraine Has Also Continued To Target Russian Oil Infrastructure. On November 19 And 21, Ukraine Struck Russia Using U.S.-made ATACMS And HIMARS, As Well As British Storm Shadow Missiles. Earlier In June, Ukraine Used Drones To Target Russian Oil Facilities, Including Four Refineries.

Impact Of Russian Oil Production On Global Markets

Russia Plays A Significant Role In Global Oil Production. However, Output Has Declined Due To Sanctions Related To Its Invasion Of Ukraine And Supply Cuts By OPEC+. Russia Reported Producing About 9 Million Barrels Of Crude Oil Daily This Month.

The Ukraine War Has Created Global Market Uncertainty. Geopolitical Tensions Continue To Exacerbate Supply Risks, Especially Considering Russia’s Role In The Oil Market. Despite This, U.S. Crude And Gasoline Inventories Have Limited Price Increases. Data Showed That Crude Oil Stocks Rose By 545,000 Barrels To 430.3 Million Barrels, While Gasoline Inventories Grew By 2.1 Million Barrels To 208.9 Million Barrels.

Oil Inventory Projections And Market Outlook

Despite Rising Oil Prices, Swelling U.S. Crude And Gasoline Stocks Have Capped Significant Price Gains. Analysts Predict Another Increase In Oil Inventories Next Week. This Could Put Further Pressure On Prices. Jim Ritterbusch Of Ritterbusch And Associates States, "We Will Expect A Rebound In U.S. Refinery Activity Next Week, Which May Have Negative Effects On Both Crude And Key Products."

The Ukraine War And Growing Geopolitical Risks Will Likely Continue To Influence Oil Supply And Demand. This Is Expected To Drive Volatility In The Market.

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