Baghdad: Global oil prices rose as tensions escalated and peace efforts stalled in Ukraine. West Texas Intermediate crude rose 0.7% to settle above $60 a barrel, amid a continued risk premium as the prospects for a peace agreement between Ukraine and Russia diminished.

According to National Iraqi News Agency, markets are awaiting any progress that could lead to easing sanctions and increasing Russian oil flows, at a time when signs of oversupply are beginning to emerge. The upward momentum in prices increased after crude closed above its 50-day moving average, supported by short covering by algorithmic traders.

Conversely, downward pressures persist as Saudi Aramco moves to lower the price of its Arab Light crude for January to its lowest level since 2021, and the number of active US drilling rigs rises by six last week.