Fires at Russian oil facilities have sparked fresh supply concerns, while signs of a possible US rate cut lifted hopes for stronger global growth and fuel demand, pushing oil prices slightly higher on Monday.
Brent crude rose 6 cents to $67.79 a barrel, while West Texas Intermediate (WTI) gained 9 cents to $63.75 in early trade.
The uptick followed a series of Ukrainian drone strikes over the weekend. One attack disrupted a reactor at a major Russian nuclear plant and ignited a fire at the Ust-Luga fuel export terminal. Another blaze at the Novoshakhtinsk refinery, capable of processing 100,000 barrels per day, continued burning four days after being hit.
Analysts warn that Ukraine’s growing success in targeting Russian energy infrastructure heightens the risk of further supply shocks.
The strikes come amid fragile peace talks. US Vice President JD Vance said Russia had dropped its earlier demand for a pro-Moscow government in Kyiv and accepted the idea of security guarantees for Ukraine. However, President Donald Trump issued a tougher warning, threatening sanctions if no progress is made within two weeks.
Meanwhile, financial markets drew optimism from Federal Reserve Chair Jerome Powell’s hints at a possible rate cut next month. Analysts believe easier US monetary policy could stimulate global growth and drive up energy demand.
ANZ analysts noted that investor appetite for commodities was boosted by both renewed supply risks and easing monetary policy expectations.
In Ukraine-Russia conflict, Russia Launched Biggest Drone, Missile Strike on Ukraine
