Oil futures gained on escalating geopolitical unrest following attacks in Russia and a bullish Goldman Sachs Group Inc. note on the outlook for commodities. 

Brent crude rose above US$86 a barrel after losing more than two per cent in the final three days of last week, while West Texas Intermediate topped $81. A terrorist attack in Moscow over the weekend left more than 130 people dead, while continued drone strikes by Ukraine are crimping Russia’s crude-refining capabilities.

“The energy market has received some support from ongoing supply disruptions and geopolitical tensions,” said Ole Hansen, head of commodities strategy at Saxo Bank A/S.

Crude is headed for a third monthly gain as OPEC+ presses on with output curbs and the US tightens sanctions on Russian flows. While China’s shaky demand outlook has been a headwind, Premier Li Qiang said Beijing was stepping up policy support to spur growth. Reflecting the bullish mood, money managers’ net-long positions on Brent have risen to the highest in more than a year.

Goldman said commodities will advance this year as central banks reduce interest rates, helping to support industrial and consumer demand. That cautiously bullish outlook echoed recent comments from other market watchers including Macquarie Group Ltd. and Carlyle Group LP.

Prices:

• Brent for May settlement rose 0.8 per cent to $86.15 a barrel at 9:43 a.m. in London.
• WTI for May delivery advanced one per cent to $81.40 a barrel.