Oil markets opened the week on a cautious note, trading in a narrow range as rising global production and U.S. tariff concerns offset supply risks stemming from intensified Russia-Ukraine tensions.
Brent and WTI Trade Flat in Muted Session
- Brent crude slipped 12 cents, or 0.18%, to $67.36 per barrel.
- WTI crude eased 13 cents, or 0.20%, to $63.88 per barrel.
With U.S. markets closed for a bank holiday, trading volumes remained subdued, keeping prices largely range-bound.
Russia-Ukraine Escalation Raises Supply Risks
Ukrainian President Volodymyr Zelenskiy vowed to intensify strikes inside Russia following drone attacks on Ukraine’s power facilities. Both nations have stepped up assaults on energy infrastructure in recent weeks, pressuring Russian oil exports.
- Weekly shipments from Russian ports fell to a four-week low of 2.72 million barrels per day, according to ANZ analysis.
Despite these disruptions, global supply growth continues to cap upside momentum.
Rising Output and Demand Concerns Weigh on Prices
- A Reuters poll suggested oil prices are unlikely to break higher this year, as increased output from top producers risks creating a surplus.
- U.S. crude production hit a record high of 13.58 million barrels per day in June, according to the EIA.
- China’s factory activity contracted for the fifth consecutive month in August, highlighting weaker demand prospects amid trade tensions and domestic slowdown.
Key Events to Watch
- OPEC+ meeting on September 7 will be closely tracked for signals on production policy.
- This week’s U.S. jobs report could shape investor expectations on rate cuts, influencing risk sentiment across commodities.
