Monday saw a slight increase in oil prices as supply interruptions brought on by increased Russia-Ukraine airstrikes and pressure from a declining currency were countered by concerns about increased output and the effect of U.S. tariffs on consumption. By 0823 GMT, Brent crude was up 31 cents, or 0.46%, at $67.79 per barrel. At $64.33, U.S. West Texas Intermediate crude fell 32 cents, or 0.5%. Due to a public holiday in the United States, trading is anticipated to be subdued.
Due to increasing supply from the OPEC+ producer group, Brent and WTI oil had their first monthly drops in four months in August, falling by at least 6%. According to Ole Hansen, director of commodities strategy at Saxo Bank, “Crude fell in August and has started September with no clear direction within established ranges as fears of a fourth-quarter supply glut are offset by geopolitical tensions.”
Investors’ attention was on Beijing, where Indian Prime Minister Narendra Modi, Russian President Vladimir Putin, and Chinese President Xi Jinping are convening a regional conference. Hansen stated that the September 7 OPEC+ meeting was also being considered.
According to tanker tracker data quoted by ANZ analysts, weekly exports from Russian ports have fallen to a four-week low of 2.72 million barrels per day (bpd), causing markets to remain cautious about the country’s oil supplies.
Following Russian drone assaults on power plants in northern and southern Ukraine, Ukrainian President Volodymyr Zelenskiy pledged on Sunday to react with more strikes deep into Russia. Targeting energy infrastructure and interfering with Russian oil shipments, both nations have increased their bombings in recent weeks.
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