Oil prices climbed on Monday as investors weighed the impact of Ukrainian drone attacks on key Russian oil infrastructure that could disrupt global crude and fuel supplies.
Brent crude oil, against which Nigerian oil is priced, rose by 47 cents or 0.7 percent to $67.46 a barrel at 07:22 a.m. in Nigeria, while the U.S. West Texas Intermediate (WTI) crude gained 48 cents or 0.8 percent to $63.17 per barrel.
The latest escalation saw Ukraine target Russia’s Primorsk oil terminal and the Kirishi refinery. Primorsk, the largest oil export hub in western Russia, has the capacity to load about 1 million barrels per day (bpd) of crude.
The Kirishinefteorgsintez refinery, operated by Surgutneftegaz, processes approximately 355,000 bpd of crude, accounting for 6.4 percent of Russia’s total refining capacity.
Analysts noted that sustained attacks on such facilities could add upward pressure to oil prices.
JPMorgan analysts led by Natasha Kaneva said the strike on Primorsk reflects “a growing willingness to disrupt international oil markets,” warning of potential risks to existing price forecasts.
Tony Sycamore, analyst at IG Markets, stated that a strategic shift by Ukraine to target Russian export infrastructure would “bring upside risks to forecasts,” even as the market continues to monitor OPEC+ plans to increase output.
In Russia’s Bashkortostan region, officials confirmed that oil production would be maintained despite drone strikes on facilities over the weekend.
The geopolitical pressure on Moscow has been heightened by U.S. President Donald Trump’s warning that Washington is ready to impose additional sanctions on Russia.
He emphasized that Europe must act in line with U.S. measures to counter Russia’s oil revenues.
Beyond supply risks, investors are also focusing on economic signals in the United States. Softer employment data and rising inflation have raised concerns about growth in the world’s largest economy and oil consumer.
The Federal Reserve is expected to decide on a potential rate cut at its policy meeting on September 16–17.
At the same time, U.S.-China trade talks resumed in Madrid on Sunday with Washington pressing its allies to introduce tariffs on Chinese imports tied to Russian oil purchases.
The outcome of these talks could add another layer of uncertainty for energy markets.
While the oil market is currently supported by supply threats from Ukraine’s strikes, analysts caution that oversupply concerns linked to OPEC+ production and weak U.S. growth remain in play, creating a volatile environment for crude prices in the coming weeks.