Oil prices extend gains after Ukrainian drone strikes on Russian energy facilities
Oil prices rose on Monday, with investors weighing the impact of Ukrainian drone attacks on Russian refineries that could disrupt crude and fuel exports. Traders also kept an eye on signs of rising U.S. fuel demand.
Brent crude futures gained 47 cents, or 0.7%, to trade at $67.46 per barrel by 06:22 GMT. U.S. West Texas Intermediate (WTI) crude rose 48 cents, or 0.8%, to $63.17 per barrel.
Both contracts climbed more than 1% last week, as Ukraine intensified strikes on Russian oil infrastructure. Targets included the Primorsk terminal, Russia’s largest oil export hub, and the Kirishinefteorgsintez refinery, one of the two biggest refineries in the country.
Key Russian oil hubs under pressure
Analysts at JPMorgan said the attack on Primorsk, which can load 1 million barrels per day, highlights Ukraine’s growing willingness to disrupt global oil markets. This could put further upward pressure on crude prices.
The Kirishi refinery, run by Surgutneftegaz, processes about 355,000 barrels per day, or 6.4% of Russia’s total output. IG Markets analyst Tony Sycamore noted that if Ukraine is shifting its strategy toward Russian oil infrastructure, “upside risks” to price forecasts will increase, even as oversupply fears linger due to OPEC+ plans to raise output.
Meanwhile, officials in Russia’s Bashkortostan region confirmed that production will continue despite another drone strike on a local oil company over the weekend.
Geopolitical and economic risks add pressure
Political pressure on Russia is also mounting. U.S. President Donald Trump reiterated on Sunday that he is ready to impose further sanctions on Moscow. However, he emphasized that Europe must take matching actions to have a real impact.
At the same time, investors are monitoring U.S.-China trade talks in Madrid, which began Sunday. Washington has demanded that allies impose tariffs on Chinese imports over Beijing’s continued purchases of Russian oil.
On the economic front, softer U.S. job data and rising inflation last week fueled concerns about growth in the world’s largest oil consumer. Even so, the Federal Reserve is expected to cut interest rates during its September 16–17 meeting, which could provide some support to energy markets.
