Oil prices are rising amid the intensification of the war in Ukraine, raising concerns about the stability of raw material supplies to global markets. The increasing tension between Russia and Ukraine has led to risks of disruptions in the supply of Russian oil, which has directly impacted price dynamics.
This is reported by Finway
Changes in Oil Prices and Market Factors
On Tuesday, September 2, Brent crude oil prices rose by 37 cents (0.54%) to reach $68.52 per barrel. Meanwhile, the price of WTI crude increased by $1.01 (1.58%) to $65.02. One of the reasons for this increase, experts say, is the expectation that the U.S. Federal Reserve may soon lower interest rates, which could positively affect economic activity and demand for energy resources.
“Oil prices are receiving short-term support from the prospect of a quick easing of Fed policy,” noted Priyanka Sachdeva, a senior market analyst at Phillip Nova.
Ukrainian Strikes and Oil Market Forecasts
Recently, Ukrainian drones have struck energy infrastructure targets in the Russian Federation, causing shutdowns at facilities that account for at least 17% of Russia’s refining capacity (about 1.1 million barrels per day). This has further heightened uncertainty in the market.
Daniel Hynes, a senior commodity strategist at ANZ, emphasized that risks to Russian energy infrastructure remain high, especially following recent strikes on refineries that occurred last weekend.
In addition to geopolitical factors, investors are closely monitoring preparations for the meeting of the Organization of the Petroleum Exporting Countries (OPEC) and its allies, scheduled for September 7. OPEC+ is expected to make no changes to current production levels, but the market is bracing for possible surprises.
Analysts note that the increase in oil supply is outpacing demand, which could lead to a surplus in the market. According to ING experts, if the surplus intensifies, OPEC+ may decide to restore supply cuts to stabilize prices.