Oil prices rise on Russia supply fears and Fed policy outlook
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Oil prices jumped on Tuesday amid Ukrainian drone attacks on Russian oil facilities and market anticipation of a US Federal Reserve rate cut expected to stimulate fuel demand.
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An oil tanker arrives in Port Aransas, Texas, in the United States, on August 10, 2025. (AP)
Oil prices climbed by more than a dollar per barrel on Tuesday as markets reacted to escalating Ukrainian drone strikes on Russian oil ports and refineries, raising concerns of potential supply disruptions.
Brent crude futures settled 1.5% higher at $68.47 per barrel, while US West Texas Intermediate (WTI) gained 1.9%, closing at $64.52 per barrel.
According to industry sources cited by Reuters, Russia’s state pipeline operator Transneft has warned producers of possible output cuts following the attacks on vital export terminals and refining facilities. Estimates by Goldman Sachs suggest that recent Ukrainian strikes have already disrupted around 300,000 barrels per day of Russian refining capacity.
Read more: India defies US pressure, set on buying Russian oil
Fed rate decision adds momentum
In addition to supply concerns, investors are awaiting the outcome of the US Federal Reserve’s two-day meeting, with expectations pointing to an interest rate cut. Analysts say a rate reduction would stimulate economic activity and boost fuel demand, adding further support to crude markets.
Read more: OPEC+ set to approve larger-than-expected oil supply increase
Broader market implications
The dual pressure of military strikes on Russian energy infrastructure and the anticipation of looser US monetary policy has reinforced oil’s upward trajectory, with traders closely watching whether Brent crude can push back toward the $69 per barrel mark.
Read more: US sanctions 115+ Iranian entities aiming to cut oil revenues
