Oil prices were little changed in Asian trade on Tuesday, holding on to the previous session’s gains, as traders weighed the risk of fresh supply disruptions from the Russia-Ukraine conflict against expanding output from OPEC+ members.
As of 21:03 ET (01:03 GMT), Brent Oil Futures expiring in November gained 0.3% to $68.33 per barrel, after jumping more than 1% on Monday.
West Texas Intermediate (WTI) crude futures did not settle on Monday due to a U.S. holiday, and traded 1.3% higher from their Friday close at $64.81 per barrel.
Traders weigh supply risks for Russian oil
Oil prices settled higher on Monday after reports of renewed Ukrainian strikes on Russian refining and export facilities.
Hopes for a Russia-Ukraine peace deal have dimmed after U.S. President Donald Trump last month urged Ukrainian President Volodymyr Zelenskyy and Russian President Vladimir Putin to hold direct talks before considering a trilateral summit hosted by Washington.
The intensified airstrikes have raised the chances of more sanctions against Russia, potentially leading to supply disruptions, which push prices higher.
The U.S. and its allies are also stepping up enforcement of secondary sanctions on Russian oil, though the measures have so far had limited impact on flows to Asia.
Washington last week imposed an additional 25% tariff on Indian imports, doubling the total duty to 50% from Aug. 27, in response to New Delhi’s rising purchases of Russian crude.
OPEC+ members to meet this weekend
Offsetting these risks, increased production from the Organization of the Petroleum Exporting Countries and its allies (OPEC+) in recent months has raised fears of a supply glut.
Traders are now looking ahead to the Sept. 7 meeting of OPEC and its allies for signals on output policy.
The cartel is expected to leave crude production levels steady when it meets this weekend, with the group taking a breather following recent accelerated supply hikes, a Bloomberg survey showed.
Traders are also cautiously awaiting U.S. nonfarm payrolls data due on Friday, which could help cement bets for a Federal Reserve rate cut this month.
Lower interest rates support oil prices by boosting economic activity, weakening the dollar, and making commodities more attractive to investors.
Source :
https://www.investing.com/news/commodities-news/oil-prices-hold-gains-amid-russia-supply-risks-opec-meeting-looms-4218331
