Oil prices rose after Ukrainian strikes on energy facilities in the Russian Federation
On August 25, oil prices rose after Ukraine struck the territory of the Russian Federation. Attacks by the Ukrainian army raised concerns about possible disruptions in Russian oil supplies, while expectations of lower interest rates in the US supported forecasts of global economic growth and increased fuel demand. reports Reuters.
Brent futures were up 3 cents, or 0.04%, at $67.76 a barrel, while West Texas Intermediate (WTI) crude futures were up 7 cents, or 0.11%, at $63.73 a barrel.
The day before, Ukraine carried out drone strikes on Russia, which led to a sharp decrease in the power of one of the reactors at a large nuclear power plant and caused a large-scale fire at the fuel export terminal in Ust-Luz.
In addition, the fire at the oil refinery in Novoshakhtinsk, caused by the strikes of Ukrainian drones, continued on Sunday for the fourth day, the acting governor of the region reported. The plant is focused mainly on fuel exports and has an annual capacity of 5 million metric tons of oil, which is about 100,000 barrels per day.
“Given Ukraine’s success in striking Russian oil infrastructure, risks for crude oil are shifting to the upside”, explained IG market analyst Tony Sycamore.
Investors showed more interest after Federal Reserve Chairman Jerome Powell on August 22 signaled a possible cut in interest rates at a meeting of the US central bank next month.
“Risk appetite in the markets has increased investor interest in all commodities, helped by renewed supply problems in the energy and metallurgy sectors”, analysts at ANZ note.
