Oil Rose as Ukraine Targets Russia’s Export Lifelines

Oil prices advanced on Tuesday as Ukrainian drone strikes on Russian energy infrastructure raised concerns over supply disruptions, while investors awaited the Federal Reserve’s policy decision later this week.

Brent settled $1.03 higher, or 1.5%, at $68.47 a barrel.

WTI gained $1.22, or 1.9%, to close at $64.52 a barrel.

The rally could have stemmed from warnings of Russia’s pipeline operator, Transneft, that producers may be forced to curb output after attacks on export terminals and refineries. Operations at Primorsk, a key Baltic terminal, were recently interrupted, underscoring risks to Russia’s export capacity and reinforcing upward pressure on prices.

Analysts estimate the strikes have sidelined around 300,000 barrels per day of Russian refining capacity so far this month. The disruption lifted US diesel futures by 2.5%, outpacing gains in crude and gasoline. Market observers cautioned that further damage to Russian refineries could tighten global diesel balances by fuelling demand for US exports.

Meanwhile market attention is now turning to the Federal Reserve’s 16–17 September meeting, where a rate cut is widely anticipated. Such a move could support economic activity and fuel consumption, though uncertainty over the strength of the US economy continues to temper optimism.

Written: Aiman Haikal