Oil prices rose as Ukraine's attacks on Russia's oil infrastructure signaled supply constraints
Oil prices rose on Thursday after Ukraine's attacks on Russia's oil infrastructure signaled potential supply constraints, and the stalled peace talks dampened expectations for a deal that would restore the flow of Russian oil to global markets. However, weak fundamentals continue to limit gains.
Brent crude rose 24 cents, or 0.38%, to $62.91 by 03:49 GMT, while WTI Crude Futures (WTI) rose 29 cents, or 0.49%, to $59.24.
Ukraine said it attacked the Druzhba oil pipeline, marking the fifth such attack on the pipeline, which carries Russian oil to Hungary and Slovakia. The pipeline operator and Hungary's oil and gas company later said supplies were flowing normally through the pipeline.
Attacks are now targeting refineries in recurring cycles, effectively hindering the stabilization of key assets.
This reduced Russia's refining capacity by approximately 5 million barrels per day between September and November, a decrease of 335,000 barrels per day year-over-year. Gasoline was the hardest-hit sector, while kerosene production also weakened significantly.
The peace talks conducted by Trump's representatives with the Kremlin have not yielded any tangible progress toward ending the war. The perception that progress on a peace plan for Ukraine has stalled has also supported prices.
Trump said it's unclear what will happen now.
Crude oil will likely remain within a narrow range as the Ukraine peace efforts continue.
Previously, expectations of an end to the war have caused prices to fall.
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