Oil continues to rise after Russian refineries were hit
Kyiv • UNN
Brent and WTI crude futures rose amid drone attacks on Russian refineries and growing fuel demand in the US. Investors are assessing the consequences of the attacks on oil and fuel exports from Russia.
Oil prices continued to rise on Monday, as investors assessed the consequences of drone attacks on Russian oil refineries, which could disrupt oil and fuel exports, and monitored the growing demand for fuel in the United States, UNN reports with reference to Reuters.
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Brent crude futures rose 47 cents, or 0.7%, to $67.46 a barrel by 06:22 GMT (09:22 Kyiv time), while US West Texas Intermediate crude futures traded at $63.17 a barrel, up 48 cents.
Both contracts rose more than 1% last week amid an increase in attacks on Russian oil infrastructure, including the largest oil loading terminal in Primorsk and the Kirishinefteorgsintez refinery, one of the two largest refineries in Russia.
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Primorsk has the capacity to transship about 1 million barrels of oil per day, making it a key export hub for Russian oil and the largest port in western Russia, the publication writes. Meanwhile, the Kirishi refinery, operated by Surgutneftegaz, processes about 17.7 million tons of Russian oil per year, or 355,000 barrels per day, which accounts for 6.4% of the country's total production.
"If we see a strategic shift by Ukraine towards Russian oil export infrastructure, this raises risks for forecasts," said IG Markets analyst Tony Sycamore, despite fears of oversupply due to OPEC+'s plans to increase production.
An oil company in Bashkortostan (Russia) will maintain production levels despite a drone attack on Saturday, said regional governor Radiy Khabirov.
Pressure on Russia is growing, as US President Donald Trump on Sunday reiterated that he is ready to impose sanctions against Russia, but Europe must act proportionally with the United States, the publication indicates.
Investors are also monitoring trade talks between the US and China in Madrid, which began on Sunday amid Washington's demands for allies to impose tariffs on imports from China due to purchases of Russian oil.
Last week, weaker US jobs data and rising inflation raised concerns about economic growth in the world's largest economy and oil consumer, despite the Federal Reserve likely to cut interest rates at its September 16-17 meeting, the publication notes.