Oil prices rose on Tuesday as concerns about supply disruptions grew amid an escalation of the conflict between Russia and Ukraine.
Brent crude added 40 cents, or 0.59%, to $68.55 a barrel by 0149 GMT, while U.S. West Texas Intermediate crude was at $65.06 a barrel, up $1.05, or 1.64%.
WTI futures did not settle on Monday due to the Labor Day holiday in the U.S.
Recent Ukrainian drone attacks shut down facilities accounting for at least 17% of Russia’s oil processing capacity, or 1.1 million barrels per day, according to Reuters’ calculations.
On Sunday, Ukraine’s President Volodymyr Zelenskiy said Ukraine plans new strikes deep into Russia after weeks of intensified attacks on Russian energy assets.
Three-and-a-half-years into the war, Russia and Ukraine have both intensified airstrikes in recent weeks. Russia has targeted Ukraine’s energy and transport systems, while Ukraine has been attacking Russian oil refineries and pipelines.
“Ongoing risks to energy infrastructure in Russia remain high. Ukraine struck more Russian oil refineries over the weekend as it ramped up its attacks on infrastructure,” said Daniel Hynes, senior commodity strategist at ANZ, in a note on Tuesday.
China’s vision for “a new global order” could potentially add to geopolitical tensions. Chinese President Xi Jinping pressed his vision on Monday for a new global security and economic order that prioritises the “Global South”, in a direct challenge to the U.S., during a summit that included the leaders of Russia and India.
China and India are the biggest buyers of crude oil from Russia, the world’s second largest exporter. Trump has imposed additional tariffs on India over the purchases but not on China.
Investors now await a meeting among members of the Organization of the Petroleum Exporting Countries and their allies on September 7 for any clues on further output hikes from the group.
(Reporting by Anjana Anil in Bengaluru; Editing by Muralikumar Anantharaman)