Oil prices rose on Tuesday 2 September amid concerns over supply disruptions due to the escalation of the war between Russia and Ukraine, as well as market speculation on whether upcoming US employment data could lead to interest rate cuts.

Source: Reuters

Details: Brent crude gained US$0.37, or 0.54%, reaching US$68.52 per barrel at 06:17 GMT, while West Texas Intermediate (WTI) rose US$1.01, or 1.58%, to US$65.02 per barrel.

WTI futures were not settled on Monday due to the US Labor Day holiday.

According to Reuters estimates, recent Ukrainian drone strikes have shut down facilities accounting for at least 17% of Russia’s refining capacity, or 1.1 million barrels per day.

On Sunday 31 August, Ukrainian President Volodymyr Zelenskyy said that Ukraine plans new strikes deeper inside Russia following weeks of intense attacks on Russian energy facilities.

“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 and India remain the largest buyers of Russian crude, the world’s second-biggest exporter. US President Donald Trump imposed additional tariffs on India over these purchases, but not on China.

Investors are now awaiting the September 7 OPEC+ meeting for signals on future production plans. The market expects the group to keep output levels unchanged, after supply cuts in the past six months.

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