Oil settles higher as investors assess attacks on Russian energy facilities

Core Insights - Oil prices increased as investors reacted to Ukrainian drone attacks on Russian refineries and U.S. President Trump's pressure on NATO nations to stop purchasing Russian oil [1][2] Group 1: Oil Price Movements - Brent crude futures rose by 45 cents (0.67%) to $67.44 per barrel, while U.S. West Texas Intermediate crude increased by 61 cents (0.97%) to $63.30 per barrel [1] - Both crude contracts gained over 1% last week due to intensified Ukrainian attacks on Russian oil infrastructure, including the Primorsk terminal [3] Group 2: Impact of Ukrainian Attacks - A significant Russian refinery in Kirishi halted a key processing unit following a drone attack, affecting 6.4% of Russia's total crude processing capacity [3][4] - Primorsk terminal has a loading capacity of approximately 1 million barrels per day [4] Group 3: U.S. Political Influence - Trump indicated that the U.S. would consider imposing new energy sanctions on Russia if all NATO nations ceased buying Russian oil [4] Group 4: Market Dynamics - Strong refinery demand in China and a decline in U.S. crude inventories supported oil prices, despite weaker economic data from China [5] - The market is anticipating a potential interest rate cut by the U.S. Federal Reserve, which could lower borrowing costs and boost fuel demand [5][6] - A weaker U.S. dollar, resulting from expectations of a more aggressive Fed cut, may enhance crude demand as it makes oil cheaper for foreign currency holders [6]