WTI price climbs on Russian supply risks after Ukrainian drone strikes.
European Union officials are evaluating potential sanctions targeting companies in India and China involved in Russia’s Oil trade.
Oil demand prospects improved ahead of a possible Federal Reserve rate cut on Wednesday.
West Texas Intermediate (WTI) Oil price extends its gains for the third consecutive session, trading around $63.20 during the Asian hours on Tuesday. Crude Oil prices received support after a potential supply disruption from Russia following Ukrainian drone attacks on its energy infrastructure and mounting US pressure on buyers of Russian crude.
Ukraine attacked the Primorsk Oil terminal last week, a key export hub capable of handling up to 1 million barrels per day. Over the weekend, it also struck a major processing unit at Russia's Kirishi refinery, which has a capacity of about 355,000 barrels per day.
Kyiv has escalated its campaign against Russia’s energy infrastructure in a bid to undermine Moscow’s war effort, as peace negotiations remain stalled. Concerns over potential supply disruptions from Russia, responsible for more than 10% of global Oil production, have pushed Oil prices higher, Reuters reported, citing IG market analyst Tony Sycamore.
Additionally, reports suggest the European Union (EU) is weighing sanctions on companies in India and China that facilitate Russia’s Oil trade as part of its latest package of restrictions. On Monday, US Treasury Secretary Scott Bessent said Washington would refrain from imposing additional tariffs on Chinese goods to curb Beijing’s purchases of Russian Oil unless European nations also move to levy steep duties on China and India.
Traders geared up for an anticipated rate cut from the US Federal Reserve this week that could boost Oil demand. The Fed is expected to lower rates by 25 basis points at its September meeting, though there remains a slight chance of a 50-basis-point cut. Markets have also factored in continued easing through 2026 to help stave off a potential recession.
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