Oil prices steadied on Monday as traders considered the fallout from Ukrainian drone assaults on Russian refineries and the outlook for U.S. fuel consumption.
Brent crude futures rose by 3 cents to $67.02 a barrel by 0009 GMT, while U.S. West Texas Intermediate crude gained 8 cents to $62.77 a barrel.
Both contracts rose more than 1% last week as Ukraine intensified strikes on Russian oil infrastructure, including the Primorsk export terminal Russia’s largest oil-loading facility and the Kirishinefteorgsintez refinery, one of the country’s two biggest plants.
“The attack suggests a growing willingness to disrupt international oil markets, which has the potential to add upside pressure on oil prices,” JPMorgan analysts led by Natasha Kaneva wrote in a note, referring to the Primorsk strike.
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Primorsk has the capacity to load about 1 million barrels per day (bpd) of crude, making it the biggest export hub in western Russia. The Kirishi refinery, operated by Surgutneftegaz, processes around 17.7 million metric tonnes annually (355,000 bpd), equal to about 6.4% of Russia’s total refining capacity.
Meanwhile, a company in Russia’s Bashkortostan region will maintain production despite a drone attack on Saturday, regional governor Radiy Khabirov said.
Pressure on Moscow is intensifying as U.S. President Donald Trump reiterated on Sunday that he is willing to impose further sanctions on Russia but insisted Europe must match U.S. measures.
“Europe is buying oil from Russia. I don’t want them to buy oil,” Trump told reporters. “And the sanctions they’re putting on are not tough enough. I’m willing to impose sanctions, but they will have to toughen theirs to be commensurate with mine.”
Investors are also watching U.S.–China trade talks in Madrid that began on Sunday, as Washington presses its allies to impose tariffs on Chinese imports over Beijing’s purchases of Russian oil.
In the United States, weaker job-creation data and rising inflation last week heightened concerns about growth in the world’s largest economy and top oil consumer, even as the Federal Reserve is expected to cut interest rates at its 16–17 September meeting.
