Global oil prices inched higher on Monday as investors weighed the fallout of Ukraine’s drone strikes on Russian refineries and renewed pressure from U.S. President Donald Trump for NATO allies to cut Russian oil purchases.
By mid-Monday, Brent Crude rose 40 cents (0.6%) to $67.39 per barrel, while U.S. West Texas Intermediate gained 52 cents (0.8%) to trade at $63.21.
According to Saxo Bank analyst Ole Hansen, prices remained range-bound between $65 and $70, supported by disruption risks from Ukrainian attacks and Trump’s call for stronger secondary sanctions.
Russian officials confirmed that Ukraine launched more than 360 drones overnight, sparking a brief blaze at the Kirishi refinery in northwest Russia. The refinery processes about 355,000 barrels per day, or 6.4% of Russia’s crude output. Ukraine has also targeted Primorsk, Russia’s largest crude export terminal, with a daily capacity of one million barrels.
Reuters reports that both Brent and WTI gained more than 1% the previous week amid rising attacks on Russia’s energy infrastructure.
Pressure on Moscow intensified after Trump said the U.S. was ready to impose fresh sanctions but only if NATO partners halted their purchases of Russian oil.
Additional support for crude prices came from robust refinery demand in China and a drop in U.S. stockpiles, though weaker Chinese economic data capped gains. Giovanni Staunovo, an analyst at UBS, noted that demand strength and falling inventories offered some cushion for prices.
Meanwhile, markets are awaiting the outcome of the U.S. Federal Reserve meeting scheduled for September 16–17, where policymakers are expected to cut interest rates. Looser monetary policy could stimulate economic activity and fuel demand.
Last week, slower U.S. job growth alongside rising inflation fuelled concerns about the outlook for the world’s largest oil consumer.
