FX.co ★ Oil Holds Advance

On Tuesday, WTI crude oil futures steadied around $63.3 per barrel following two consecutive days of gains. This trend was bolstered by potential supply disruptions due to ongoing Ukrainian strikes targeting Russian energy infrastructure and increasing pressure from the United States on purchasers of Russian oil. Over the weekend, a Ukrainian strike resulted in the closure of a critical processing unit at Russia's Kirishi refinery, which processes approximately 355,000 barrels of crude per day. This incident followed a similar attack last week on the Primorsk oil terminal, a significant export facility with the capacity to handle up to 1 million barrels per day. Additionally, reports have surfaced that the European Union is contemplating sanctions against Indian and Chinese companies facilitating Russia's oil trade, as part of a forthcoming sanctions package. This development aligns with US President Trump’s recent indication over the weekend of his willingness to enforce significant sanctions on Russia, should NATO members and European countries take analogous measures. Meanwhile, market participants are preparing for a possible interest rate reduction from the US Federal Reserve later this week, which could stimulate increased fuel demand.