Oil Prices Remain in Narrow Range as Rising Supply Counters Russia Disruptions

PUKMEDIA

Oil prices.

Oil prices edged higher on Monday, as concerns over increasing global production and potential demand impacts from U.S. tariffs offset supply disruptions stemming from intensified Russian airstrikes in Ukraine and pressure from a weaker U.S. dollar.

According to Reuters, Brent crude rose by 31 cents, or 0.46%, to $67.79 per barrel by 08:23 GMT. Meanwhile, U.S. West Texas Intermediate (WTI) crude slipped by 32 cents, or 0.5%, to $64.33 per barrel. Market activity is expected to remain subdued due to a U.S. public holiday.

Both Brent and WTI recorded their first monthly declines in four months in August, shedding more than 6% amid heightened production from OPEC+ member states.

Investor attention was focused on Beijing, where Chinese President Xi Jinping, Russian President Vladimir Putin, and Indian Prime Minister Narendra Modi convened for a regional summit. Additionally, markets are preparing for the OPEC+ meeting scheduled for 7 September.

Concerns over Russian oil flows persist, with weekly shipments from Russian ports falling to a four-week low of 2.72 million barrels per day, according to tanker tracking data cited by ANZ analysts.

Ukrainian President Volodymyr Zelenskiy pledged on Sunday to respond with further strikes deep within Russian territory following recent drone attacks on power facilities in northern and southern Ukraine. Both countries have escalated air operations in recent weeks, targeting energy infrastructure and disrupting Russian oil exports.

In the United States, crude oil production reached a record high in June, increasing by 133,000 barrels per day to 13.58 million bpd, according to Energy Information Administration data released on Friday.



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