Global oil prices rose on Tuesday as fears of supply disruptions deepened following intensified attacks on Russia’s energy infrastructure in the ongoing conflict with Ukraine.
Brent crude gained 40 cents, or 0.59%, to trade at $68.55 per barrel by 0149 GMT, while U.S. West Texas Intermediate (WTI) crude climbed $1.05, or 1.64%, to $65.06 per barrel. WTI futures did not settle on Monday due to the U.S. Labor Day holiday.
The latest spike in prices comes after Ukrainian drone strikes disabled Russian facilities representing at least 17% of the country’s oil refining capacity, equivalent to around 1.1 million barrels per day, according to calculations by Reuters.
On Sunday, Ukrainian President Volodymyr Zelenskiy announced plans for deeper strikes inside Russia following weeks of intensified assaults on oil refineries and pipelines.
Russia, in response, has escalated its bombardment of Ukraine’s energy and transport infrastructure, worsening the three-and-a-half-year-old war’s toll on both countries’ economies.
Analysts say the tit-for-tat strikes have significantly increased risks to global energy security.
“Ongoing risks to energy infrastructure in Russia remain high. Ukraine struck more Russian oil refineries over the weekend as it ramped up its attacks on infrastructure,” noted Daniel Hynes, senior commodity strategist at ANZ.
Beyond the battlefield, geopolitical tensions are also shaping oil market dynamics. On Monday, Chinese President Xi Jinping renewed calls for a “new global order” prioritizing the Global South during a summit attended by leaders of Russia and India.
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Both China and India remain Russia’s largest crude oil buyers despite Western sanctions.
The U.S., under former President Donald Trump, imposed additional tariffs on India over its oil purchases from Russia, though China was spared similar penalties.
Market watchers are now turning attention to the upcoming September 7 meeting of the Organization of the Petroleum Exporting Countries (OPEC) and its allies for guidance on possible output adjustments in response to tightening global supplies.