FX.co ★ WTI Crude Climbs, Capped by Surplus Fears

WTI crude oil futures experienced a near 1% increase, closing at $63.3 per barrel on Monday, building on the upward trend from the previous week. This rise was influenced by traders weighing the impact of increasing Ukrainian drone attacks on Russian energy installations against predictions of an impending supply surplus. Ukraine executed a significant offensive with over 360 drones, causing a temporary fire at the Kirishi refinery, which processes 355,000 barrels per day, following an attack on the Primorsk export terminal, responsible for managing approximately 1 million barrels daily. The pressure on Moscow escalated further as US President Donald Trump reaffirmed his willingness to implement extensive sanctions on Russian crude, contingent upon NATO allies ceasing purchases—a move that could potentially alter global energy dynamics. Moreover, attention is focused on the US-China trade discussions in Madrid, where the United States is urging its allies to consider imposing tariffs on Chinese goods due to Beijing's ongoing procurement of Russian oil. Nonetheless, these gains were moderated by concerns over the potential weakening of US demand and anticipated global supply surplus as OPEC+ increases production output.