Oil prices edged higher on Thursday after Ukraine launched new attacks on Russia’s oil infrastructure. The strikes raised concerns about potential supply disruptions, while stalled peace negotiations reduced hopes for any deal that might restore Russian oil flows to global markets. Even so, weak market fundamentals kept gains limited.
Brent crude rose 41 cents, or 0.65%, to $63.08 by 0659 GMT. U.S. West Texas Intermediate gained 45 cents, or 0.76%, to $59.40.
Ukraine targeted the Druzhba oil pipeline in Russia’s central Tambov region, according to a Ukrainian military intelligence source. This marked the fifth strike on the pipeline, which carries Russian crude to Hungary and Slovakia. Despite the attack, the pipeline operator and Hungary’s national oil company reported that flows remained normal.
Consultancy Kpler said Ukraine’s drone campaign against Russian refining infrastructure has entered a more coordinated phase. It noted that repeated strikes aim to prevent key facilities from stabilizing. As a result, Russian refining throughput fell to around 5 million barrels per day between September and November. That represents a year-on-year drop of 335,000 barrels per day, with gasoline output hit hardest and gasoil production also weaker.
Oil prices also found support from signs that peace talks between the U.S. and Russia are making little progress. Representatives for President Donald Trump left recent discussions with no breakthrough on ending the war. Trump said it remains unclear what will happen next.
Vandana Hari, founder of Vanda Insights, said crude is likely to trade in a narrow range as long as peace efforts remain slow.
Earlier in the week, expectations of a potential peace deal had pushed prices lower. Traders believed any agreement might include lifting sanctions on Russia, allowing more Russian oil into an already oversupplied market.
Adding to the cautious outlook, Fitch Ratings lowered its oil price assumptions for 2025 to 2027. The agency cited ongoing oversupply and production growth that is expected to outpace global demand.
