Primorsk Attacked, Brent Strengthens
Oil prices edged higher on Monday as the market weighed the impact of Ukrainian drone attacks on Russian energy facilities and US President Donald Trump's call for NATO countries to halt purchases of Russian oil. At 13:30 GMT, Brent rose 0.6% to $67.39/barrel and WTI rose 0.8% to $63.21/barrel. Despite the gains, prices remained in the $65–$70 range as market participants assessed supply risks.
Russia reported a major attack by at least 361 drones, which briefly sparked a fire at the Kirishi Refinery in northwest Russia. Earlier, Ukraine also targeted Primorsk, Russia's largest export terminal. Both oil contracts rose more than 1% last week as attacks on Moscow's energy infrastructure intensified.
On the supply side, Primorsk has a capacity of around 1 million bpd, while Kirishinefteorgsintez (Kirishi) processes around 355,000 bpd (about 6.4% of Russia's total). Pressure on Russian exports could increase if disruptions persist, especially amid US pressure for additional energy sanctions—on the condition that all NATO countries also halt purchases of Russian oil.
Other supporting factors came from solid Chinese refinery demand last month and a decline in US crude oil inventories, although weak Chinese economic data curbed gains. The market is also awaiting the Fed's decision (September 16-17), which is expected to ease policy. Lower interest rates typically support economic activity and fuel demand, but weak US employment data and rising inflation have raised growth concerns. (ayu)
Source: Newsmaker.id
