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Oil prices rise at settlement amid supply concerns
Oil prices rose at settlement on Monday, August 25, amid concerns about disruption to Russian oil supplies due to the possibility of new US sanctions and Ukrainian attacks on Russian energy infrastructure.
Brent crude futures settled at $68.80 a barrel, up $1.07, or 1.58%.
US West Texas Intermediate (WTI) crude futures settled at $64.80 a barrel, up $1.14, or 1.79%.
"The market is somewhat concerned about the stalling of the peace negotiations (between Russia and Ukraine)," said Ole Hansen, head of commodity strategy at Saxo Bank.
"The market expects supply to exceed demand during the autumn months, but in the short term, this is challenged by potential geopolitical turmoil," he added.
Ukraine launched a drone attack on Russia on Sunday, significantly reducing the capacity of a reactor at one of Russia's largest nuclear power plants and sparking a massive fire at the Ust-Luga fuel export terminal, according to Russian officials.
Another fire at the Novoshakhtinsk refinery in southern Russia continued for the fourth consecutive day as a result of a Ukrainian drone attack, according to the region's acting governor.
"Ukraine's success in targeting Russian oil infrastructure increases the upside risk to crude prices," said Tony Sycamore, market analyst at IG.
