Oil Prices Steady Amid Ukraine Drone Strikes on Russian Refineries

Oil prices held largely steady on Monday as investors weighed the impact of Ukrainian drone attacks on Russian energy infrastructure and monitored U.S. fuel demand trends.

Brent crude futures inched up 3 cents to $67.02 a barrel, while U.S. West Texas Intermediate (WTI) rose 8 cents to $62.77. Both benchmarks gained over 1% last week as Ukraine intensified strikes on Russian oil facilities, including the Primorsk export terminal and the Kirishinefteorgsintez refinery.

Primorsk, the largest oil port in western Russia, can load about 1 million barrels per day, making it a critical export hub. The Kirishi refinery, operated by Surgutneftegaz, processes 355,000 barrels per day—roughly 6.4% of Russia’s total refining capacity. Despite disruptions, Bashkortostan regional authorities confirmed production would continue following another drone strike.

JPMorgan analysts, led by Natasha Kaneva, noted that such attacks highlight a growing risk of deliberate disruptions to global oil markets, potentially driving prices higher.

Meanwhile, geopolitical tensions are escalating. U.S. President Donald Trump reiterated his willingness to impose tougher sanctions on Russia, urging Europe to match Washington’s actions. “Europe is buying oil from Russia. I don’t want them to buy oil,” Trump said, pressing for stricter penalties.

At the same time, trade talks between the U.S. and China resumed in Madrid, with Washington pressing allies to impose tariffs on Chinese imports tied to Russian oil purchases.

Macroeconomic signals are also influencing sentiment. Softer U.S. job data and rising inflation have fueled concerns over slowing growth in the world’s largest oil consumer. Investors now expect the Federal Reserve to cut interest rates during its September 16-17 meeting, which could support energy demand.

Overall, oil markets remain sensitive to geopolitical risks, trade negotiations, and economic indicators, keeping prices in focus for global investors.