Oil prices hover at two-year highs, Brent approaches $89

Oil prices rose on Tuesday amid mounting geopolitical tensions in the Middle East, while Ukraine intensified its attacks on Russian energy infrastructure. 

A guided Ukrainian plane executed airstrikes against Russia’s third largest oil refinery, following a similar series of attacks in March, which curtailed Moscow’s refinery capacity by 14%. 

Tomorrow, OPEC+ members will convene to discuss market developments, with analysts expecting no change in production policies. 

The Energy Information Administration in the US will also announce official crude inventory data tomorrow, expected to show a decline of 300 thousand barrels. 

On trading, Brent June futures rallied 1.7%, or $1.5 to $88.92 a barrel, the highest since June 2022. 

US crude futures due in May rose 1.7%, or $1.44 to $85.15 a barrel, the highest since June 2022.