Brent oil futures climb 2% as Russia flows, U.S. policies in focus

Core Viewpoint - Oil prices experienced fluctuations due to the ongoing Russia-Ukraine conflict, with traders closely monitoring the situation and its implications for supply and demand dynamics in the oil market [1][3]. Supply Dynamics - Brent futures for November were trading at $69.46 per barrel, reflecting a 1.92% increase, while the October Nymex WTI contract was at $65.97 per barrel, up 3.06% [2]. - Ukrainian drone attacks have reportedly disrupted facilities that account for at least 17% of Russia's oil processing capacity, raising concerns about the stability of Russian oil supplies [3]. - The OPEC+ alliance, including major players like Russia and Saudi Arabia, is expected to maintain current production levels without changes in strategy during their upcoming meeting [6][7]. Geopolitical Factors - Ukrainian President Volodymyr Zelenskyy has announced intentions for "new deep strikes" against Russia, indicating an escalation in military actions [4]. - The U.S. has imposed indirect pressure on Russia's oil consumers, particularly targeting India's imports of Russian crude, which has led to tensions between the U.S. and India [5]. - The recent meeting of Putin, Xi Jinping, and Modi at the Shanghai Cooperation Organization summit highlights a united front among major oil consumers against Western sanctions [5]. Market Influences - Market participants are awaiting the U.S. August job report, which is anticipated to influence the Federal Reserve's monetary policy decisions, potentially leading to lower interest rates and increased demand for oil [7].