DTN Oil Update

Karim Bastati
DTN Analyst

VIENNA (DTN) -- Oil prices edged higher Monday morning, after Ukraine ramped up its attacks on Russian oil infrastructure over the weekend. While U.S. President Trump on Saturday reiterated sanctions threats on Russian oil, he named NATO countries ceasing their purchases as a precondition.

NYMEX-traded WTI for October delivery rose $0.25 to trade near $62.94 bbl, and ICE Brent for November delivery gained $0.12 to $67.11 bbl.

October RBOB gasoline futures edged up $0.0087 to $1.9941 gallon, and the front-month ULSD contract was up $0.0235 to $2.3135 gallon.

The U.S. Dollar Index was little changed, up 0.079 points to 97.690.

Two landlocked NATO and European Union countries, Slovakia and Hungary, which are exempt from the EU ban on Russian oil imports and whose governments have often opposed stricter sanctions on Russia, are unlikely to agree to halt Russian crude oil deliveries via pipeline any time soon, rendering fresh U.S. sanctions less likely. Under their current plan, all EU countries are to phase out purchases of Russian oil by 2028.

Despite this, market participants continued to focus on supply risks regarding Russian oil as Ukraine continued to damage oil infrastructure. On Thursday, Ukrainian drones struck Russia's largest oil export hub in the Baltic Sea in Primorsk, as well as several pumping stations feeding the oil terminal. On Saturday, Ukraine attacked the Kirishi refinery one of Russia's largest, although the extent of the damage has so far remained unclear. Last month alone, Ukrainian attacks on key energy infrastructure have affected about a fifth of Russian refining capacity.