Oil prices rose on Tuesday as concerns about supply disruptions grew amid an escalation of the conflict between Russia and Ukraine, and as the market weighed whether upcoming U.S. jobs data would lead to interest rate cuts.
Brent crude added 37 cents, or 0.54%, to $68.52 a barrel by 0617 GMT, while U.S. West Texas Intermediate crude was at $65.02 a barrel, up $1.01, or 1.58%.
WTI futures did not settle on Monday due to the Labor Day holiday in the U.S.
"Oil prices are drawing short-term strength from the prospect of imminent Fed easing, which is reviving demand sentiment," said Priyanka Sachdeva, senior market analyst at Phillip Nova.
A raft of U.S. labour data is due this week ahead of the Federal Reserve’s September meeting, which could strengthen the case for monetary easing after surprisingly weak U.S. payrolls data released in July.
On the supply side, recent Ukrainian drone attacks shut down facilities accounting for at least 17% of Russia’s oil-processing capacity, or 1.1 million barrels per day, according to Reuters’ calculations.
On Sunday, Ukraine’s President Volodymyr Zelenskiy said Ukraine plans new strikes deep into Russia after weeks of intensified attacks on Russian energy assets.
Three-and-a-half-years into the war, Russia and Ukraine have both intensified airstrikes in recent weeks. Russia has targeted Ukraine’s energy and transport systems, while Ukraine has been attacking Russian oil refineries and pipelines.
Source : Investing.com