Oil prices settled higher on Monday as traders weighed potential supply disruptions stemming from new U.S. sanctions and continued Ukrainian drone attacks on Russian energy infrastructure. Expectations of a global crude surplus, however, kept gains contained. Brent crude rose $0.43, or 0.7%, to $64.06 per barrel, while WTI gained $0.38, or 0.6%, to close at $60.13.
Fuel prices led the broader complex higher, with gasoline futures up more than 1% and diesel advancing nearly as much. Refinery outages in the United States and strikes on Russian facilities helped drive those gains. Analysts noted that refinery issues in the Great Lakes and West Coast regions, coupled with a wave of flight cancellations caused by the ongoing federal shutdown, could further lift gasoline demand heading into the Thanksgiving travel period.
In Russia, Lukoil’s Volgograd refinery remains offline following a Ukrainian drone attack late last week, while Russian forces said they intercepted additional drone boats near the port of Tuapse. Lukoil has also declared force majeure at Iraq’s West Qurna-2 oilfield, citing operational difficulties under U.S. sanctions. The company continues to face mounting pressure as the November 21 deadline approaches for foreign firms to end dealings with Russian producers.
Market observers noted diverging trends across the energy complex — with crude prices held back by growing seaborne storage while refined products remain supported by tighter supply. Floating storage volumes in Asia have doubled in recent weeks as tighter Western restrictions slow Russian crude exports to China and India.
OPEC+ producers are set to raise output by 137,000 barrels per day in December but have agreed to pause further increases in the first quarter of 2026, signaling caution in the face of a potential supply glut. Despite the limited hikes, analysts expect the global market to remain slightly oversupplied into next year.
A partial rebound in risk appetite also helped support crude, as lawmakers in Washington made progress toward ending the U.S. government shutdown. The Senate’s procedural move to reopen federal operations provided a lift to equity and commodity markets early in the session.