Oil prices advanced on Tuesday as escalating conflict between Russia and Ukraine heightened concerns about supply stability, while uncertainty over U.S. trade policies and monetary decisions added fresh volatility to energy markets.
Brent crude for November delivery settled at $69.14 per barrel, up 1.45%, while October Nymex WTI rose 2.47% to $65.59. WTI did not trade on Monday due to the U.S. Labor Day holiday.
Ukraine’s intensified drone strikes have disrupted about 17% of Russia’s oil processing capacity, according to Reuters estimates. President Volodymyr Zelenskyy vowed “new deep strikes” against Russia, signaling no immediate path to ceasefire despite stalled Western mediation.
Washington has meanwhile imposed additional tariffs on Indian goods, citing New Delhi’s continued imports of Russian crude. India rejected the move as “unfair, unjustified and unreasonable,” while President Donald Trump criticized U.S.-India trade ties as a “totally one sided disaster.” China, Russia’s top oil buyer, has so far avoided direct U.S. measures, underscoring geopolitical divides reinforced at this week’s Shanghai Cooperation Organization summit.
Investors are also awaiting signals from key OPEC+ members, including Russia and Saudi Arabia, who meet Sept. 7. Analysts expect the group to maintain current output levels, though some caution cuts could return if surplus fears grow.
Adding to the mix, markets are closely watching the upcoming U.S. jobs report, likely to shape Federal Reserve rate decisions. A potential rate cut could weaken the dollar, lifting demand for dollar-priced commodities like oil.
