Oil posted a weekly surge in prices as markets reacted to supply risks in Russia and declining US crude inventories. The international benchmark Brent crude traded at $67.35 per barrel, up around 2.9% from last week’s close of $65.45.
Similarly, the American benchmark West Texas Intermediate (WTI) stood at $63.39 per barrel, up roughly 2.7% from $61.70 last Friday. The week began on a positive note, driven by concerns over potential Russian supply disruptions following a series of Ukrainian drone attacks targeting key infrastructure. On September 14, an overnight strike sparked a fire at the Kirishi oil refinery, one of Russia’s major processing facilities, in the north western Leningrad region. The attack damaged equipment and forced the shutdown of a key processing unit that accounts for roughly 40% of the plant’s capacity—about 400,000 barrels per day. Repairs are expected to take approximately a month.
Market sentiment was further supported by US-China trade developments.US Treasury Secretary Scott Bessent said the administration would not impose unilateral tariffs to curb China’s Russian oil purchases, though such measures could be considered if Europe imposes steep duties on China and India. These remarks eased concerns over potential trade disruptions and added optimism to the market. Oil prices, however, dipped slightly on Thursday after the US Federal Reserve (Fed) cut interest rates for the first time this year. The Fed lowered its policy rate by 25 basis points, describing the move as a “risk-management cut” to protect against further labor market weakness. While lower borrowing costs typically support oil demand, traders remain cautious amid weak economic signals and muted consumption forecasts. Meanwhile, the Energy Information Administration’s (EIA) latest data showed that commercial crude stocks fell 2.2% in the week ending September 12, dropping by 9.3 million barrels to 415.4 million, contrary to market expectations of a 1.4 million-barrel increase.
While strategic petroleum reserves, excluded from commercial inventories, rose by 500,000 barrels, gasoline stocks declined by 2.3 million barrels, suggesting stronger domestic demand. Adding to market uncertainty, US President Donald Trump said in a Fox News interview Thursday that Europe could help end the Russia-Ukraine war by imposing sanctions or tariffs on China and called for a rapid halt to Russian oil imports—actions he argued would weaken the Kremlin’s war effort. Such measures could further tighten global oil supply.
Crude oil prices edge higher week-on-week over supply risks
