WASHINGTON (dpa-AFX) - Crude oil jumped on Tuesday as concerns about supply disruptions increased following today's strikes on Russian energy sites by Ukraine in the ongoing three-plus-year Russia-Ukraine war. Trading in WTI Crude Oil had been paused yesterday on account of Labor Day.
Today, WTI Crude Oil for October delivery was last seen trading up by $1.51 (or 2.36%) at $65.52 per barrel.
Attempting to end the drawn out war between Russia and Ukraine weeks before, US President Donald Trump threatened Russia to agree to a ceasefire soon or face heavy sanctions on its oil exports. In addition, he also levied 25% tariffs on countries buying oil from Russia, India being the major casualty with this decision.
Separately, Trump had two individual meetings with the leaders of the warring nations and stated that he would soon prepare grounds for both leaders to sit together and negotiate a resolution. He added that he would intervene as a third party if necessary.
However, Russia neither buckled under the sanctions threat nor showed willingness for a truce but continued its aggressive military steps against Ukraine, prompting the latter to retaliate.
Both nations have intensified their mutual air strikes against each other in the recent weeks.
While Ukraine targeted Russia's oil refineries and pipelines, Russia attacked Ukraine's Sumy region, damaging several homes and disrupting water and energy supplies.
Reuters reported Ukrainian drone strikes halted roughly 1.1 million barrels per day of oil production.
This intensification of the Russia-Ukraine conflict led to worries over supply side disruptions among oil traders and supported the price on the upside.
Meanwhile, at the Shanghai Cooperation Summit in Tianjin, China, Russian President Vladimir Putin criticized Western nations for provoking Russia and causing war.
At the SCO Summit - in the presence of Russian and Indian premiers - Chinese President Xi Jinping renewed his call for a 'new global order' with Global South as the center. As India and China are the major purchasers of oil from Russia, the subtle 'call' given against US influence has given rise to fresh trade concerns
Russian oil giants, namely Rosneft, Lukoil, and Gazprom Neft reported decreases in profits for H2 2025 mainly due to looming sanctions and oversupply by OPEC+ alliance.
In their last virtual meeting on August 3, the OPEC+ member nations consented to increase their output to 547,000 barrels per day from September 1.
Traders are now awaiting the group's upcoming meeting, scheduled for September 7, to get clues on their next move and production strategies.
Oil being a dollar-denominated commodity, investors are also eyeing a rate cut by the Federal Reserve. Their FOMC meeting, which decides interest rates, is to be held September 16 to 17.
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