Oil Prices Rise in Asian Trade Amid Supply Tightening Concerns and Attacks on Russian Infrastructure

Oil prices in Asian trading on Monday saw a slight increase, building on last week's gains of nearly 4%, driven by concerns over tightening supply exacerbated by further attacks on Russian energy facilities.

Brent crude futures for May delivery rose by 0.5% to $85.81 a barrel, while the April contract for U.S. West Texas Intermediate (WTI) crude increased by 0.6% to $81.53.

Attacks on Russian refineries have added a risk premium of $2-$3 per barrel, according to Vandana Hari, founder of oil market analysis provider Vanda Insights. These attacks, which have affected around 7% of Russian refining capacity in the first quarter, have heightened supply concerns in markets reliant on Russian crude exports.

Meanwhile, in the Middle East, Israeli Prime Minister Benjamin Netanyahu's plan to advance into Gaza's Rafah enclave has raised geopolitical tensions, with German Chancellor Olaf Scholz expressing concerns about its impact on regional peace.