Oil prices extended their rally on Monday after Ukraine launched fresh drone attacks on Russian refineries and ports, disrupting crude operations at key export hubs.
Brent crude rose to $65.72 per barrel, while U.S. West Texas Intermediate (WTI) settled at $61.68. Ukraine claimed its strikes hit Russia’s two main oil hubs in the Baltic Sea, including Primorsk, the country’s largest oil-loading port. Reports also indicated that three pumping stations supplying crude to Ust-Luga were targeted, leading to temporary disruptions.
Adding to the bullish sentiment, Chinese data showed refiners processed nearly 15 million barrels per day (bpd) of crude in August, up 7.6% year-on-year, supported by strong imports and higher domestic output. Apparent demand climbed to 14.53 million bpd, a 4.9% increase from a year earlier.
In the U.S., Baker Hughes data revealed that oil drilling activity expanded for a third consecutive week, with active rigs rising by two to 416—the highest since mid-July.
However, speculative positioning remained cautious. NYMEX WTI net longs fell by 14,630 lots to 12,657 in the week ending September 9, the weakest bullish stance since June 2006. Similarly, ICE Brent net longs declined by 41,476 lots to 209,578.
The pullback reflects concerns over OPEC+’s recent decision to boost output and the International Energy Agency’s forecast of a record oil surplus next year, which could weigh on prices despite current geopolitical risks.
