In the global commodity market on Tuesday, prices of crude oil climbed over escalating tensions between Russia and Ukraine renewed supply concerns and markets await signals from the upcoming OPEC+ meeting. Brent crude was trading at $68.35 per barrel, up 0.5% from the previous close of $68.04. US benchmark West Texas Intermediate rose 0.5% to $64.73 from $64.41 in the prior session. Moscow and Kyiv have intensified aerial attacks in recent weeks, with strikes increasingly targeting energy and transport systems. Ukraine said early Sunday that an overnight Russian drone attack caused power cuts in the southern city of Odesa.
Ukraine’s Air Force claimed that its air defenses shot down 126 out of 142 drones launched by Russia overnight. Meanwhile, US Treasury Secretary Scott Bessent said that “all options are on the table” as the Trump administration weighs new sanctions on Russia due to its continued bombing of Ukrainian cities. Expectations of a prolonged conflict and potential new sanctions have heightened supply risks, adding upward pressure on oil prices. Investors are now focused on the September 7 meeting of OPEC and its allies, where the group may provide signals on possible further output hikes.
At its most recent meeting, the eight members of the OPEC+ group, comprising Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman, agreed to raise oil production by 547,000 barrels per day (bpd) in September compared to August levels. The group noted that a stable global economic outlook and healthy market fundamentals, reflected in low oil inventories, supported the decision. However, it also said: “The phase-out of the additional voluntary production adjustments may be paused or reversed subject to evolving market conditions.”
Brent crude climbs to $68 a barrel over supply concerns ahead of OPEC+
