Oil prices rose as Ukraine's drone strikes targeted Russian energy infrastructure
Oil prices rose on Monday after Ukraine escalated its attacks on Russia. This fueled concerns that Russian oil supplies could be disrupted, while Federal Reserve Chairman Powell hinted at a possible interest rate cut in September, bolstering the outlook for global growth and fuel demand.
Brent crude futures rose 13 cents, or 0.19%, to $67.86 at 06:56 GMT, while WTI futures rose 15 cents, or 0.24%, to $63.81.
Ukraine launched a drone strike on Russia on Sunday. The attack significantly reduced the reactor's capacity at one of Russia's largest nuclear power plants and triggered a massive fire at the Ust-Luga fuel export terminal.
Separately, a fire at Novoshakhtinsk refinery in Russia, sparked by a Ukrainian drone strike, continued for a fourth day on Sunday.
The refinery primarily sells fuel for export and has an annual capacity of 5 million tons of oil, equivalent to approximately 100,000 barrels per day.
Crude oil risks are trending upward, given Ukraine's success in targeting Russian oil infrastructure.
US President Donald Trump on Friday reiterated his threats to impose sanctions on Russia if progress toward a peaceful resolution in Ukraine is not made within two weeks.
Despite signs from the Fed that it will cut interest rates in September, both benchmark prices appear to have lost momentum, increasing risk appetite. Trump's tariffs have proven highly likely to further negatively impact economic growth, which is currently suppressing oil prices.
Investor risk appetite increased after Powell on Friday hinted at a potential interest rate cut at the US Federal Reserve's next month's meeting. Market risk appetite, coupled with a resurgence of supply-side problems in energy and metals, has boosted investor appetite in the commodity complex.
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