Oil prices edged higher on Monday after Ukraine stepped up attacks on Russia, a Reuters report said.
Ukraine launched a drone attack on Russia on Sunday, forcing a sharp fall in the capacity of a reactor at one of Russia’s biggest nuclear power plants. The attack sparked a huge blaze at the Ust-Luga fuel export terminal, Russian officials said.
In addition, a fire at Russia’s Novoshakhtinsk refinery, caused by a Ukrainian drone attack, was burning for the fourth day on Sunday, the acting governor of the region said.
The development already fanned concerns that Russian oil supply could be disrupted, while expectations of a cut in U.S. interest rates buoyed the outlook for global growth and fuel demand.
Brent crude futures rose 3 cents, or 0.04%, to $67.76 at 0442 AM WAT, and West Texas Intermediate (WTI) crude futures gained 7 cents, or 0.11%, to $63.73.
The refinery sells fuel mainly for export and has an annual capacity of 5 million metric tons of oil, or around 100,000 barrels per day.
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Meanwhile, U.S. Vice President JD Vance said Russia has made “significant concessions” toward a negotiated settlement in its war with Ukraine on Sunday.
However, U.S. President Donald Trump also renewed threats on Friday that he would impose sanctions on Russia if there was no progress toward a peaceful settlement in Ukraine in two weeks.
Investors’ risk appetite has improved after Federal Reserve Chair Jerome Powell on Friday signalled a possible interest rate cut at the U.S. central bank’s meeting next month.
