Crude Oil extends gains for the second consecutive day and reaches session highs at $63.00.
News that Ukraine attacked Russian oilfields has pushed prices higher.
Concerns about oversupply continue to weigh on prices.
Crude Oil is posting minor gains on Monday, with price action approaching levels close to $63.00 after bouncing from lows of $61.50 on Friday. News about Ukrainian attacks on Russian plants has provided some support, although the prospects of weaker demand in the near-term keep upside attempts limited so far.
News has reported that Ukrainian drones hit some of Russia’s largest oil-producing plants over the weekend as US President Trump urged all NATO members to stop buying Russian crude and called for sanctions on China for doing so.
A Russian spokesperson affirmed that the attacks have inflicted only minor damage. Still, the recall of a series of attacks last summer, which crippled Russia’s processing capacity, has contributed to lifting prices on Monday.
Oil upside attempts, however, are likely to remain limited amid growing concerns about oversupply. The slower output hike approved by OPEC+ countries this week has been offset by higher US production, while the economic downturn in most of the world’s leading economies anticipates a future decline in demand.
In this context, the prices of the YS benchmark WTI remain struggling near multi-month lows. Price action remained trapped between the mentioned $61.50 level and $63.70 on the upside last week after being rejected at levels near $66.00 earlier in September. Looking from a wider perspective, WTI prices have depreciated about 20% from January’s highs.
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