Oil prices rose today, continuing the trend of the previous day. The increase in energy prices is attributed to fears of supply disruptions from Russia after Ukrainian drone strikes on the aggressor country's oil refineries.
Brent crude futures rose 15 cents to $67.59 a barrel, while U.S. West Texas Intermediate (WTI) crude rose to $63.45 a barrel. Brent rose 45 cents and WTI 61 cents on Monday.
Ukraine has stepped up attacks on Russia's energy infrastructure in an effort to limit its military capabilities. Analysts say the strikes could reduce Russia's export capacity, which accounts for more than 10% of global oil production.
“Elevated concerns about supply disruptions from Russia are driving up prices,” said IG analyst Tony Sycamore. JP Morgan stressed that an attack on an export terminal, particularly Primorsk, could have a significant impact on export markets.
An additional factor supporting prices was a weaker US dollar, linked to expectations of a rate cut by the Federal Reserve, which makes oil cheaper for holders of other currencies.
In addition, investors expect a drawdown in U.S. crude inventories in the week to Sept. 12. They are forecast to fall by 6.4 million barrels after a previous rise of 3.9 million. Official data will be released on Wednesday.
