Oil Rallies on Russia-Ukraine Clashes Fuel Supply Concerns
Oil rallies in the commodities market on Monday as escalating and aggressive Russia-Ukraine clashes fuelled supply concerns while the Organisation of Petroleum Exporting Countries (OPEC) and allies (OPEC+) delivered a smaller-than-expected output hike.
Brent crude was trading at $66.34 per barrel, up by 1.3% from the previous close of $65.45. US benchmark West Texas Intermediate (WTI) rose 1.4% to $62.60 from $61.70 in the prior session.
Oil prices climbed as Russia launched its largest airstrike on Ukraine since the start of the war, stoking fears of tougher sanctions and renewed supply risks.
Ukrainian President Volodymyr Zelenskyy said on X that Russian forces deployed more than 800 drones, four ballistic missiles and nine cruise missiles in a strike on Kyiv.
The country’s Air Force reported that while most of the drones were intercepted, 54 UAVs and nine missiles struck targets in the capital, including a government building hit for the first time.
Speaking to reporters before departing the White House for New York, US President Donald Trump said he was prepared to move to a second phase of sanctions on Russia.
European Council President Antonio Costa said Friday the bloc was accelerating work on new measures and would send a delegation to Washington.
Expectations of a prolonged conflict have heightened supply concerns supporting upward price movements, while Trump’s sanction threats against Russia capped gains by fueling fears of weaker economic growth and softer near-term energy demand.
Meanwhile, OPEC+’s smaller-than-expected output hike also lent support to prices by fueling supply concerns. OPEC and its allies agreed to boost oil output by 137,000 barrels per day (bpd) in October.
The increase, led by Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria and Oman, fell short of market expectations. Still, prices found support as traders welcomed clarity on the group’s restrained supply plan.
OPEC+ had previously raised production by 547,000 bpd in September and 548,000 in August. #Oil Rallies on Russia-Ukraine Clashes Fuel Supply Concerns Oil Prices Retreat on Weak U.S. Demand Outlook
