London: Global oil prices rose on Monday as Ukrainian drone attacks on Russian energy facilities intensified, heightening supply concerns while optimism over potential U.S. monetary easing supported demand expectations.
Brent crude gained six cents to trade at 67.79 dollars a barrel, while West Texas Intermediate (WTI) crude climbed nine cents to 63.75 dollars. The modest increase followed fresh reports of significant damage to Russian refineries and export terminals after a series of Ukrainian strikes.
One of the most critical incidents occurred at the Novoshakhtinsk refinery in southern Russia, which has been burning for four consecutive days after being hit by drones. The facility processes about 100,000 barrels per day, and the prolonged fire has deepened fears of supply disruptions. In addition, Ukraine’s attacks targeted the Ust-Luga fuel export terminal and forced capacity reductions at several nuclear plants.
The strikes have severely strained Russia’s refining sector, with estimates suggesting up to 13 percent of total refining capacity has been affected. Supply disruptions have also hit the Druzhba pipeline, a vital route for Russian oil flows to Hungary and Slovakia, where deliveries have been suspended repeatedly in recent weeks.
At home, Russia is facing gasoline shortages in several regions, including Crimea and the Far East, despite a government ban on exports aimed at stabilizing domestic supply. High summer demand has compounded the strain on available fuel stocks.
Beyond the battlefield, global markets found support from remarks by U.S. Federal Reserve Chair Jerome Powell, who hinted at the possibility of an interest rate cut. Such a move could stimulate economic activity and, in turn, boost fuel demand.
The geopolitical backdrop also added to volatility. U.S. Vice President J.D. Vance noted that Moscow had made significant concessions, including abandoning efforts to impose a puppet regime in Kyiv and recognizing Ukraine’s territorial integrity. However, former president Donald Trump warned of new sanctions if no breakthrough is achieved in peace talks within two weeks.
Last week, crude prices had already risen by nearly a dollar as stalled negotiations and unexpectedly strong U.S. oil demand, reflected in a six-million-barrel drawdown in inventories, buoyed the market.
Analysts expect oil markets to remain volatile as Ukraine intensifies strikes on Russian energy infrastructure, U.S. monetary policy decisions near, and political uncertainty lingers over peace efforts. For European nations such as Hungary and Slovakia, the repeated suspension of pipeline supplies underscores the urgency of diversifying energy sources to safeguard against future disruptions.