Oil gains on Ukraine drone attacks cutting Russian supply

Group 1: Oil Price Movements - Oil prices increased due to Ukraine's drone attacks on Russia's energy infrastructure, leading to a reduction in fuel exports from Russia. Brent futures rose to $70.13 per barrel, up 71 cents (1.02%), while U.S. West Texas Intermediate (WTI) crude finished at $65.72 per barrel, gaining 74 cents (1.14%) [1] - Both Brent and WTI benchmarks are on track to register their largest increases since mid-June [1] Group 2: Geopolitical Factors - The situation between Russia and Ukraine remains a focal point for the markets, with drone attacks by Ukraine contributing to rising oil prices [2] - Russia is implementing a partial ban on diesel exports until the end of the year and extending an existing ban on gasoline exports, which has resulted in fuel shortages in several Russian regions [2] Group 3: U.S. Government Actions and Economic Data - U.S. government actions, including pressure from President Trump on allies to reduce Russian imports, are supportive of rising oil prices. There are expectations that countries like India and Turkey may reduce their Russian imports [3] - The U.S. gross domestic product (GDP) increased at an upwardly revised annualized rate of 3.8% in the last quarter, which may influence oil demand positively [5] - However, stronger-than-expected economic data could lead the U.S. Federal Reserve to be more cautious about further interest rate cuts, which could impact demand dynamics [5] Group 4: Supply Dynamics - Crude oil exports from Iraq's semi-autonomous Kurdistan region are set to resume, which may affect overall supply levels in the market [4] - The market is closely monitoring Kurdish production to assess its impact on supply [4]