Written by The Banking Post
Oil prices inched up on Monday after Ukrainian drone strikes hit Russian energy facilities, heightening concerns over supply disruptions, while expectations of a US interest rate cut lifted demand prospects.
At 0342 GMT, Brent crude rose 3 cents to $67.76 a barrel, and West Texas Intermediate (WTI) gained 7 cents to $63.73.
Ukraine’s latest drone attacks set off a blaze at Russia’s Ust-Luga fuel export terminal and forced a reactor at a major nuclear plant to cut output. In the Rostov region, a fire at the Novoshakhtinsk refinery—hit days earlier by drones—was still burning on Sunday. The refinery processes about 100,000 barrels of oil per day, mainly for export.
“Given the success that Ukraine is having with its targeting of Russian oil infrastructure … the risks for crude oil are shifting to the topside,” said IG market analyst Tony Sycamore.
Meanwhile, geopolitical tensions were tempered slightly after US Vice President JD Vance said Russia had made “significant concessions” toward a settlement, including dropping demands for a pro-Moscow regime in Kyiv. But President Donald Trump warned fresh sanctions could follow within two weeks if peace talks stalled.
On the economic front, risk appetite improved after US Federal Reserve Chair Jerome Powell signaled a possible interest rate cut next month. Analysts at ANZ noted that a “risk-on tone across markets” had boosted commodity prices, with supply-side concerns adding to oil’s support.
