On September 2, oil prices rose amid concerns over potential disruptions in Russian oil supplies. Brent increased by 37 cents (0.54%) to $68.52 per barrel, while WTI rose by $1.01 (1.58%) to $65.02 per barrel, Reuters reports. Traders are also considering the possibility of the U.S. Federal Reserve lowering interest rates.
Source: Gazeta.UA
According to ANZ senior commodities strategist Daniel Hynes, recent Ukrainian drone attacks have halted facilities accounting for at least 17% of Russia’s refining capacity, or 1.1 million barrels per day. “Risks to Russia’s energy infrastructure remain high,” he noted.
Investors are anticipating a meeting of OPEC+ members and their allies on September 7. The market expects production volumes to remain unchanged for now.
“Oil prices are receiving short-term support from the prospect of a rapid easing of Fed policy,” emphasized Phillip Nova senior market analyst Priyanka Sachdeva.
ING analysts note that due to economic concerns and a potential supply surplus, oil supply is increasing faster than demand. “The scale of next year’s surplus means the group is unlikely to deliver additional volumes to the market. A more serious risk is the resumption of OPEC+ supply cuts due to surplus concerns,” they add.