Oil prices extended gains during Asian trade on Monday as investors weighed the fallout from Ukrainian drone strikes on Russian energy facilities, raising concerns over disruptions to crude and fuel exports, while also tracking signs of United States fuel demand growth.
By 3:05 pm AEST (5:05 am GMT), Brent crude futures rose 36 cents, or 0.5%, to US$67.35 per barrel, while U.S. West Texas Intermediate (WTI) added 34 cents, or 0.5%, to $63.03 per barrel.
Both benchmarks advanced 2.3% and 1.3% respectively last week as Ukraine intensified attacks on Russian oil infrastructure, including the key Primorsk terminal and the Kirishinefteorgsintez refinery.
Primorsk, Russia’s largest oil-exporting terminal in the west, has the capacity to load around 1 million barrels per day, making it a cornerstone of the country’s export infrastructure.
The Kirishi refinery, operated by Surgutneftegaz, reportedly processes about 355,000 barrels per day, or 17.7 million metric tons annually, equal to 6.4% of Russia’s total refining capacity.
Geopolitical pressure is mounting on Moscow as U.S. President Donald Trump reiterated on Sunday that he is prepared to impose further sanctions, but stressed that European allies must act “in a way that is commensurate with the United States”.
ANZ analysts noted: "President Trump said his patience with President Putin is running out and he threatened Moscow with new economic sanctions.
"Russia said on Friday that negotiations with Ukraine were on pause, despite Trump’s push following a meeting with Putin last month. Those sanctions could be applied to additional banks and oil-related companies.
"The U.S. will also urge the Group of Seven to impose tariffs as high as 100% on China and India for their purchases of Russian oil in an effort to end the war in Ukraine."
At the same time, investors are closely monitoring U.S.-China trade talks underway in Madrid.
