FX.co ★ Oil Rises for 3rd Session on Geopolitical Tensions

WTI crude oil futures surged by more than 1% Tuesday, reaching $64 per barrel, propelled by heightened supply concerns in Russia. The ongoing situation was intensified overnight as Ukraine continued its targeted strikes on Russian energy infrastructure, particularly on refineries, and including the Primorsk export hub. According to Goldman Sachs, these attacks have disrupted approximately 300,000 barrels per day of Russian refining capacity throughout August and early September. Furthermore, Reuters highlighted that pipeline operators are now restricting storage options for producers, exacerbating existing supply chain bottlenecks. In response, the European Union is contemplating additional sanctions, potentially targeting companies in India and China involved in the facilitation of Moscow’s oil trade. On a broader economic perspective, market focus is directed towards the upcoming US Federal Reserve meeting this week, where a 25 basis points rate cut is anticipated. Such a move could bolster US economic growth, subsequently increasing energy demand.