Oil prices have increased as investors consider the impact of Ukrainian drone attacks on Russian refineries, which could potentially disrupt crude and fuel exports. Additionally, there is a focus on growing US fuel demand. As of 7:32 AM WAT, Brent crude futures rose by 36 cents, or 0.5 percent, to $67.35 a barrel, while US West Texas Intermediate crude was at $63.05 a barrel, up 36 cents, or 0.6 percent.

The increase in oil prices follows Ukraine’s intensified attacks on Russian oil infrastructure, including the largest oil exporting terminal, Primorsk, and the Kirishinefteorgsintez refinery, one of Russia’s two largest refineries. Primorsk has the capacity to load about one million barrels per day of crude, making it a crucial export hub for Russian oil. The refinery, operated by Surgutneftegaz, processes approximately 17.7 million metric tons per year, or 355,000 barrels per day, of Russian crude, equivalent to 6.4 percent of the country’s total.

Despite a drone attack on Saturday, an oil company in Russia’s Bashkortostan region will maintain production levels, according to regional governor Radiy Khabirov. The situation is being closely monitored as pressure mounts on Russia, with US President Donald Trump reiterating his willingness to impose sanctions on the country. However, he emphasized that Europe must take commensurate action.

Investors are also watching US-China trade talks, which began in Madrid on Sunday. The talks come amid Washington’s demands that its allies impose tariffs on imports from China over its purchases of Russian oil. The ongoing developments are significant, as they have the potential to impact global oil prices and the energy market. As the situation continues to unfold, investors and industry experts will be closely monitoring the effects of the Ukrainian drone attacks and the subsequent responses from major world powers.