Oil Prices Rise Amid Supply Concerns from Drone Strikes on Russian Refineries

Oil prices experienced a modest increase on Tuesday as markets assessed the potential impact of Ukrainian drone attacks on Russian refineries, raising concerns over possible supply disruptions. Brent crude rose to $67.59 per barrel, while U.S. West Texas Intermediate (WTI) climbed to $63.45.
These attacks, targeting key energy infrastructure including export ports and refineries, have intensified since August and are seen as efforts to weaken Russia's war capabilities. Russia, a major oil producer accounting for over 10% of global output, faces significant risks to its oil supply chains.
Analysts noted that fears over reduced oil supply from Russia are supporting prices. Additionally, expectations of a U.S. Federal Reserve interest rate cut have weakened the dollar, making oil cheaper for foreign buyers and further contributing to price increases.
Market participants are closely monitoring the situation, as further escalation could lead to more substantial disruptions in global oil supply and price volatility.