Oil prices rose on Tuesday as concerns over supply disruptions mounted amid escalating tensions between Russia and Ukraine, while investors also weighed the impact of upcoming U.S. labour market data on Federal Reserve policy.
Brent crude gained 37 cents, or 0.54%, to $68.52 a barrel by 7:17 AM WAT. U.S. West Texas Intermediate (WTI) crude rose $1.01, or 1.58%, to $65.02 a barrel. WTI futures did not trade on Monday due to the U.S. Labor Day holiday.
Markets are closely watching U.S. employment figures due this week ahead of the Fed’s September meeting. Weaker-than-expected payrolls data in July has already strengthened bets on monetary easing, and fresh numbers could bolster the case for rate cuts.
On the supply front, Ukrainian drone attacks have disabled facilities accounting for at least 17% of Russia’s oil-processing capacity, equivalent to about 1.1 million barrels per day, according to Reuters. President Volodymyr Zelenskiy said on Sunday that Ukraine plans further strikes deep inside Russia after weeks of intensified assaults on Russian energy assets.
The war, now in its fourth year, has seen both sides escalate airstrikes. Russia has targeted Ukraine’s energy and transport networks, while Kyiv has focused on refineries and pipelines within Russia.
Meanwhile, geopolitical tensions deepened as Chinese President Xi Jinping advanced his vision for a “new global order” prioritising the Global South, in a direct challenge to U.S. influence. At a summit with Russian and Indian leaders on Monday, Xi underscored China’s role in reshaping global economic and security structures.
Separately, China shipped 600,000 barrels of heavy crude by tanker on Monday, adding another dimension to shifting global energy flows.
