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Oil prices jump 2% after drone attack on Russian port
Oil prices rose about 2% on Friday, September 12, after a Ukrainian drone attack on a Russian port led to the suspension of loading operations, overcoming concerns about oversupply and weak US demand.
A Ukrainian security service official told Reuters that a drone attack on the northwestern Russian port of Primorsk, one of the country's largest oil and fuel export terminals, led to the suspension of oil loadings overnight.
"These attacks on Russian energy infrastructure could negatively impact Russian crude oil and refined product exports," said Giovanni Staunovo, an analyst at UBS.
Brent crude futures rose $1.02, or 1.5%, to $67.39 a barrel, and U.S. West Texas Intermediate crude rose $1.08, or 1.7%, to $63.45.
The Kremlin announced on Friday that peace negotiations between Russia and Ukraine had stalled. Russian and Ukrainian negotiating teams have held three rounds of direct talks this year in Istanbul, the last of which was on July 23. However, the two sides have yet to reach a framework for a potential peace agreement, which could lead to further Western sanctions against Moscow.
Brent crude fell 1.7% and West Texas Intermediate fell 2% on Thursday.
The International Energy Agency stated in its monthly report that global oil supply will rise more than expected this year due to planned production increases by the Organization of the Petroleum Exporting Countries (OPEC) and allies, including Russia, within the alliance known as OPEC+.
The OPEC report did not change the organization's relatively high forecasts for global oil demand growth for 2025 and 2026, and OPEC indicated that the global economy is maintaining a strong growth trend.
