Oil prices stabilized as the market weighed supply risks from Russia and the US interest rate decision
Kyiv • UNN
Oil prices remained stable on Tuesday. Brent crude futures fell 0.3% to $67.24 a barrel, while US West Texas Intermediate crude fell 0.3%.
Oil prices remained stable on Tuesday as markets assessed potential supply disruptions from Russia after drone attacks on its refineries and the prospect of a US central bank interest rate cut, UNN reports with reference to Reuters.
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As of 08:19 GMT (11:19 Kyiv time), Brent crude futures fell 20 cents, or 0.3%, to $67.24 a barrel. US West Texas Intermediate crude fell 19 cents, also 0.3%. On Monday, Brent crude rose 45 cents to $67.44, and WTI crude rose 61 cents to $63.30.
"An attack on an export terminal like Primorsk is aimed more at limiting Russia's ability to sell its oil abroad, affecting export markets," JP Morgan analysts said.
According to Goldman Sachs estimates, the strikes affected Russian refining capacity of about 300,000 barrels per day in August and since the beginning of the month.
"While uncertainty about additional tariffs and additional sanctions remains high, we assume only a slight decrease in production in Russia, as Asian buyers continue to signal their willingness to import Russian oil," the bank said.
US Treasury Secretary Scott Bessent said on Monday that the government would not impose additional tariffs on Chinese goods to encourage China to stop buying Russian oil, unless European countries impose their own tariffs on China and India, the largest buyers of Russian oil.
Investors are also watching the US Federal Reserve meeting on September 16-17, where the bank is expected to cut interest rates.
While lower borrowing costs typically stimulate fuel demand, analysts are cautious about the overall state of the US economy.
Markets also factored in the possibility of a reduction in US oil inventories last week.
US oil inventories likely fell by 6.4 million barrels in the week ended September 12, after rising by 3.9 million barrels the previous week, Macquarie Group energy strategist Walt Chancellor said in a client note.
A Reuters poll conducted on Monday showed that analysts expected a decline in US crude and gasoline inventories last week, while distillate inventories likely rose.