Global oil prices edged higher on Tuesday as renewed geopolitical tensions between Russia and Ukraine triggered concerns over supply disruptions, while investors awaited fresh direction from the upcoming OPEC+ policy meeting.
Brent crude futures advanced by 0.5% to $68.35 per barrel, compared with the previous settlement of $68.04. Similarly, U.S. benchmark West Texas Intermediate (WTI) crude gained 0.5% to $64.73 from $64.41 in the earlier session.
The ongoing conflict in Eastern Europe continues to weigh heavily on energy markets. Russia and Ukraine have intensified aerial assaults in recent weeks, targeting critical transport and energy infrastructure. Ukraine reported that a wave of overnight Russian drone strikes left parts of the southern city of Odesa without power.
According to Ukraine’s Air Force, its defense systems intercepted 126 out of 142 drones launched by Russian forces overnight. In response, U.S. Treasury Secretary Scott Bessent signaled that Washington could impose fresh sanctions, stressing that “all options are on the table” amid Moscow’s unrelenting strikes.
Fears of prolonged hostilities and possible new sanctions on Russia have compounded concerns over tighter global oil supplies, lending further support to prices.
Market participants are closely watching the OPEC+ meeting scheduled for September 7. At its last session, the alliance — comprising Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria, and Oman — approved a production hike of 547,000 barrels per day (bpd) for September.
The group highlighted a stable global economic outlook and strong market fundamentals, reflected in low stockpiles, as reasons for the adjustment. However, OPEC+ also noted that voluntary cuts could be paused or reinstated, depending on evolving market conditions.
