Brent crude settled at $68.80, up $1.07 (1.58%), while West Texas Intermediate (WTI) closed at $64.80, up $1.14 (1.79%).
President Donald Trump reiterated Friday that Russia faces sanctions if peace talks fail to show progress within two weeks, while also threatening steep tariffs on India for its Russian oil purchases. Over the weekend, Vice President JD Vance said Moscow had made “significant concessions” toward a negotiated settlement, but peace remains elusive.
Ukraine continued to escalate pressure on Russia’s energy sector. A drone strike on Sunday set off a major fire at the Ust-Luga fuel export terminal, and another attack has left the Novoshakhtinsk refinery burning for four straight days. The refinery has a capacity of about 100,000 barrels per day, mostly for export.
While the potential for disrupted Russian flows added bullish momentum, traders also noted a counterweight: OPEC+ is reversing earlier cuts and adding millions of barrels to the market. Eight members of the group are expected to approve another output hike at their September 7 meeting.
The broader macro backdrop offered support as well. Federal Reserve Chair Jerome Powell hinted Friday at a possible September rate cut, which could stimulate growth and boost fuel demand. Still, analysts cautioned that enthusiasm may be limited, as Trump’s tariff threats raise concerns about weaker global growth and demand destruction.