SINGAPORE: Oil prices held firm on Monday as investors weighed the potential fallout from Ukrainian drone strikes on Russian refineries and export terminals, while also monitoring U.S. fuel demand trends.
Brent crude futures rose 3 cents to $67.02 a barrel by 0009 GMT, while U.S. West Texas Intermediate (WTI) gained 8 cents to $62.77. Both benchmarks advanced over 1% last week as Ukraine intensified strikes on Russia’s energy infrastructure, including the Primorsk oil terminal, Russia’s largest crude export hub, and the Kirishi refinery, one of its biggest processing facilities.
Analysts at JPMorgan noted the attacks signal “a growing willingness to disrupt international oil markets,” warning of possible upward pressure on prices. Primorsk alone can load around 1 million barrels per day (bpd), while the Kirishi refinery processes 355,000 bpd, or 6.4% of Russia’s crude.
Meanwhile, authorities in Russia’s Bashkortostan region said production would continue despite a weekend drone strike.
Geopolitical pressure on Moscow intensified as U.S. President Donald Trump again warned of stronger sanctions, urging Europe to match Washington’s actions. “Europe is buying oil from Russia … the sanctions they’re putting on are not tough enough,” he said.
Traders are also watching U.S.-China trade talks in Madrid, where Washington is pressing allies to adopt tariffs tied to China’s purchases of Russian oil. Economic concerns linger, with weak U.S. job growth and higher inflation fueling expectations of a Federal Reserve rate cut at its Sept. 16–17 meeting.
By Reuters
