Brent crude settled at $66.99, up 62 cents (0.93%), while U.S. West Texas Intermediate (WTI) closed at $62.69, up 32 cents (0.51%).
Markets initially rallied on reports of the Primorsk attack, which underscored the vulnerability of Russian energy infrastructure and the potential for export disruption. “Those attacks have room to drag down Russian crude and refined product exports,” said UBS analyst Giovanni Staunovo.
But the bullish impulse faded as traders digested bearish U.S. data. The Labor Department revised down job growth by 911,000 for the year through March, while consumer prices rose 0.4% in August, the biggest gain since January. Analysts said the data reinforced expectations of softer demand and added pressure on the Federal Reserve ahead of its September policy meeting. “The economic data is not supportive of a rally,” said John Kilduff of Again Capital.
On the supply side, the IEA warned of faster-than-expected growth in global supply this year as OPEC+ continues to raise output, while OPEC’s own report held demand forecasts steady. Meanwhile, India’s Adani Group banned tankers sanctioned by Western nations from its ports, a move that could further squeeze Russian flows into the country. India remains Moscow’s largest buyer of seaborne oil.
Looking ahead, traders are watching for whether Washington will impose fresh tariffs or sanctions on Indian and Chinese buyers of Russian crude, which could remove more barrels from the market.