Oil Prices Edge Higher as Attacks on Russian Infrastructure Stir Supply Concerns

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Oil prices.

Oil prices rose modestly in Asian trading on Thursday, supported by renewed attacks on Russian energy infrastructure and stalled diplomatic efforts to end the war in Ukraine.

Brent crude futures for February increased by 0.4% to $62.89 per barrel, while West Texas Intermediate climbed 0.5% to $59.23.

The gains followed a Reuters report that Ukrainian forces had struck the Druzhba pipeline in Russia’s Tambov region, reigniting concerns over potential disruption to Russian oil exports. Hopes for market relief faded further after high-level talks between U.S. and Russian officials concluded without progress, leaving sanctions in place and geopolitical tensions elevated.

However, the upward momentum was tempered by new U.S. inventory data. The Energy Information Administration reported a surprise rise in crude stocks—up 574,000 barrels in the week to 28 November, against expectations of a sizeable draw. Petrol and distillate inventories also saw sharp increases, highlighting continued soft demand in the United States.

Market sentiment was influenced by growing expectations that the Federal Reserve will cut interest rates next week, with traders now assigning a near-90% probability to a 25-basis-point reduction. Hopes of lower borrowing costs, which typically support oil prices by weakening the dollar and stimulating economic activity, remained intact after weaker-than-expected U.S. private-sector jobs data and a stronger ISM services reading.



PUKMEDIA