ISLAMABAD: Oil prices held steady Monday as markets weighed the impact of Ukrainian drone attacks on Russian refineries against expectations for U.S. fuel demand and a possible Federal Reserve rate cut this week.
Brent crude rose 3 cents to $67.02 a barrel, while U.S. West Texas Intermediate gained 8 cents to $62.77 by 12:09 a.m. GMT, the global standard for coordination.
Ukraine strikes Russian infrastructure
Both benchmarks rose more than 1% last week after Ukraine struck key Russian energy infrastructure, including the Primorsk terminal and the Kirishi refinery.
Primorsk, Russia’s largest oil port in the west, can load about 1 million barrels per day, Reuters reported.
The Kirishi refinery processes roughly 355,000 barrels per day, equal to 6.4 percent of Russia’s refining capacity. Analysts at JPMorgan said the attacks signaled “a growing willingness to disrupt international oil markets,” which could put upward pressure on prices.
In Russia’s Bashkortostan region, local officials said production would continue despite a weekend drone strike.
Impending US sanctions
The pressure grew as U.S. President Donald Trump warned Sunday he was ready to impose tougher sanctions on Russia and urged European nations to match U.S. measures.
“Europe is buying oil from Russia. I don’t want them to buy oil,” Trump told reporters. He added that “the sanctions they are putting on are not tough enough, and I am willing to do sanctions, but they are going to have to toughen up their sanctions commensurate with what I am doing.”
Federal reserve policy meeting
Investors are also watching U.S., China and rising inflation have raised concerns about economic momentum ahead of the Federal Reserve’s policy meeting on September 16-17, where markets expect a possible interest rate cut to support growth, Reuters reported.
The recent developments highlight how geopolitical tensions in Eastern Europe, trade negotiations in Europe, and monetary policy in the United States are converging to shape the global oil market outlook.
