Oil prices rose on Monday as markets weighed the impact of Ukraine’s escalating drone strikes on Russian refineries, raising fears of supply disruptions to global crude and fuel exports, while U.S. demand trends also remained in focus. Brent crude climbed 0.7% to $67.46 a barrel, while West Texas Intermediate (WTI) gained 0.8% to $63.17, extending last week’s gains of over 1%.
The attacks targeted key facilities, including Primorsk, Russia’s largest western export terminal with a capacity of 1 million barrels per day, and the Kirishinefteorgsintez refinery, which processes about 355,000 bpd or 6.4% of national output. Analysts at JPMorgan warned that Ukraine’s shift toward striking Russia’s oil export infrastructure could put upward pressure on prices, despite broader oversupply concerns as OPEC+ prepares to ramp up production.
IG Markets noted the attacks signaled growing risks to oil market stability, even as Russia pledged to sustain production in its Bashkortostan region despite damage. The developments come as geopolitical strains deepen, with U.S. President Donald Trump warning of further sanctions on Russia and pressing Europe to take parallel measures, while U.S.-China trade talks in Madrid have added another layer of uncertainty. At the same time, investors remain cautious about the U.S. economy, with weaker job creation and rising inflation raising concerns about slowing growth in the world’s largest oil consumer, ahead of a widely expected Federal Reserve rate cut at its September meeting.
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