Oil prices have risen as concerns grow over supply disruptions amid the escalating Russia‑Ukraine conflict. By 7:17 a.m. WAT on Tuesday, Brent crude was up 37 cents, or 0.54%, at $68.52 a barrel, while U.S. West Texas Intermediate traded at $65.02 a barrel, gaining $1.01, or 1.58%.
Recent Ukrainian drone attacks have forced the shutdown of facilities that account for at least 17 % of Russia’s oil‑processing capacity—about 1.1 million barrels per day. President Volodymyr Zelenskiy has announced plans for deeper strikes into Russia after weeks of intensified attacks on Russian energy assets. Both sides have stepped up airstrikes: Russia targets Ukraine’s energy and transport systems, and Ukraine hits Russian oil refineries and pipelines.
The market is also awaiting upcoming U.S. jobs data, which could influence expectations for interest‑rate cuts. Meanwhile, Chinese President Xi Jinping’s call for a “new global order” that prioritises the Global South—voiced at a summit with Russian and Indian leaders—adds another layer of geopolitical tension. China and India are major buyers of Russian crude, the world’s second‑largest oil exporter.
Attention now turns to the OPEC+ meeting on September 7, where members will discuss future production plans. The prevailing view is that OPEC+ will keep output steady after unwinding supply cuts over the past six months. According to the International Energy Agency, oil supply is growing faster than demand, a trend compounded by concerns over the economic impact of tariffs.
The outcomes of the OPEC+ meeting and the U.S. jobs report will be closely watched for their potential effects on the global oil market. The ongoing Russia‑Ukraine war and shifting economic dynamics are set to continue influencing oil prices in the weeks ahead, prompting investors and analysts to monitor developments closely.
Comments are closed for this story.