DTN Oil Update
Oil Prices Rise as US Looks to Stymie Russian Flows
VIENNA (DTN) -- Oil prices rose Tuesday morning as ramped up military action in the Russo-Ukrainian war have rendered an imminent peace deal increasingly unlikely. At the same time, the U.S. has been reiterating a willingness to punish buyers of Russian oil and step up sanctions' enforcement in conjunction with European allies.
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NYMEX-traded WTI for October delivery rose $0.83 to trade near $64.84 bbl, and ICE Brent for November delivery gained $0.23 to $68.38 bbl.
October RBOB gasoline futures added $0.0471 to $2.0160 gal, and the front-month ULSD contract was up $0.0614 to $2.3312 gal.
The U.S. Dollar Index strengthened by 0.765 points to 98.455.
U.S. Treasury Secretary Scott Bessent on Monday called India and China "bad actors," accusing them of financing Russia's invasion via their oil purchases. Russian crude oil flows to India have been dropping in recent weeks, but overall crude exports from Russia were stable as these shipments were largely diverted to China, according to vessel tracking data.
Ukrainian drones struck multiple refineries inside Russian territory as Russia intensified its strikes on Ukraine following the Trump-Putin meeting in Alaska. The Kremlin in a statement Monday denied that a trilateral meeting between the leaders of the U.S., Russia and Ukraine is being planned. Mounting tensions and waning prospects of an imminent peace deal have raised the geopolitical risk premium on oil and helped shift sentiment into less bearish territory.