Oil rises as Ukraine attacks Russian oil facilities

Oil prices rose on Monday as investors assessed the impact of Ukrainian drone attacks on Russian refineries, while US President Donald Trump signaled readiness to impose new sanctions on Russia if NATO countries stop purchasing Russian oil.

Brent crude futures gained 32 cents, or 0.5%, to $67.31 a barrel by 08:00 GMT, while US West Texas Intermediate rose by the same amount to $63.01 a barrel.

Russian authorities said Ukraine launched a large-scale attack late Sunday using at least 361 drones targeting Russian territory, sparking a limited fire at the massive Kirishi refinery in the northwest of the country.

Both benchmarks had recorded gains of more than 1% last week as Ukraine stepped up its attacks on Russian oil infrastructure, including Primorsk port, Russia’s largest oil export terminal.

Analysts at J.P. Morgan led by Natasha Kaneva wrote in a note: “The attack highlights a growing willingness to disrupt global oil markets, which could add upward pressure on prices,” referring to the Primorsk strike.

Primorsk port has a loading capacity of nearly 1 million barrels per day, while the Kirishi refinery processes about 355,000 barrels per day, equivalent to 6.4% of Russia’s total oil output.

IG markets analyst Tony Sycamore said: “If we are seeing a strategic shift in Ukraine’s approach to targeting Russian oil export infrastructure, that carries upside risks for price forecasts,” despite ongoing concerns about oversupply amid OPEC+ plans to increase production.

Pressure on Russia is also mounting after Trump said on Saturday that the US is prepared to impose new sanctions on the Russian energy sector, but only if all NATO members halt purchases of Russian oil and adopt similar measures.

At the same time, investors are closely watching US-China trade talks in Madrid, which began on Sunday amid US pressure on its allies to impose tariffs on Chinese imports over Beijing’s continued buying of Russian oil.

US data released last week showed a slowdown in job creation alongside rising inflation, stoking concerns about weaker growth in the world’s largest economy and biggest oil consumer.