Oil prices remained largely unchanged in Tuesday’s Asian trading session, sustaining Monday’s gains as traders weighed risks of potential disruptions from the Russia-Ukraine conflict against rising production from OPEC+ nations.
As of 21:03 ET (01:03 GMT), Brent crude for November delivery was trading 0.3% higher at $68.33 per barrel, following a more than 1% jump on Monday. WTI crude, which did not settle Monday due to the U.S. holiday, rose 1.3% from Friday’s close to $64.81 per barrel.
Russian Supply Risks Weigh on Market
Market participants remain wary after reports of renewed Ukrainian strikes targeting Russian refining and export facilities. Prospects for a peace deal between Moscow and Kyiv have cooled following President Donald Trump’s recent call for direct talks between President Zelenskyy and President Putin, prior to a potential trilateral summit in Washington.
The escalation in attacks has raised the probability of additional sanctions on Russian crude, potentially tightening global supply and supporting prices. The U.S. and its allies have also intensified enforcement of secondary sanctions on Russian oil, though shipments to Asia have so far been only modestly affected. Last week, Washington imposed an extra 25% tariff on Indian imports of Russian crude, raising total duties to 50% amid rising purchases from New Delhi.
OPEC+ Meeting in Focus
Counterbalancing these supply concerns, increased output from OPEC+ over recent months has raised fears of a surplus. Investors are now looking to the group’s September 7 meeting for guidance on future production levels. Surveys indicate that the cartel is likely to keep output steady after recent accelerated increases.
Traders are also watching Friday’s U.S. nonfarm payroll report, which could influence expectations for a Federal Reserve rate cut. Lower interest rates typically support oil by stimulating demand, weakening the dollar, and making commodities more attractive relative to government debt.
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