Oil prices pushed higher on Monday amidst mounting Ukrainian drone attacks targeting Russian energy infrastructure, rising concerns about potential distractions to Russia’s oil supply. The outlook of a US interest rate cut added supported optimism for global economic progress and energy demand.
Brent crude futures rose to some extent by 3 cents, attaining $67.76 per barrel, on the other hand West Texas Intermediate (WTI) crude has improved 7 cents to $63.73. These uncertain gains show a cautious market reply to rising geopolitical risks.
Ukraine’s Strike has triggered the Uncertainties
On Sunday, Ukraine launched a drone attack that significantly decrease the production of a reactor at one of Russia’s largest nuclear power plants and triggered a major fire at the Ust-Luga fuel export terminal.
Furthermore, a fire at Russia’s Novoshakhtinsk refinery, fuelling mainly exports, sustained into its fourth day, as per regional officials. The refinery procedures around 100,000 barrels per day, making its disruption noteworthy.
Market analysts say the success of Ukrainian strikes moves risks for crude oil prices rising. “The risks for crude oil are shifting to the topside,” noted IG market analyst Tony Sycamore.
US emphasized on negotiating to end conflict
On the diplomatic front, US Vice President JD Vance said Russia has made “significant concessions” on the way to negotiating an end to the conflict, admitting Ukraine’s regional integrity and vacating demands for a puppet command in Kyiv.
Though, US President Donald Trump transformed sanctions threats contrary to Russia should no development be made in the next two weeks.
Investors replied positively to Federal Reserve Chair Jerome Powell’s suggestion on Friday of a possible US interest rate cut in September, which may change the global demand.
In the meantime, Hungary and Slovakia advised that Ukrainian attacks might disrupt Russian oil imports for at least five days, emphasizing the fragile state of regional energy supplies.
Ankur Mishra is a journalist who covers an extensive range of news, from business, stock markets, IPOs to geopolitics, world affairs, international crises, and general news. With over a decade of experience in the business domain, Ankur has been associated with some of the reputed media brands. Through a sharp eye on global marketplaces along with deep insights and analysis of business strategies, Ankur brings simplicity to the complex economic matrix to decode market trends and empower people.
He is committed to entrenched data, facts, research, solutions, and a dedication to value-based journalism. He has covered trade tariff wars, international alliances, corporate policies, government initiatives, regulatory developments, along with micro- and macroeconomic shifts impacting global fiscal dynamics.
