Oil Prices Jump 2% as Russia–Ukraine Tensions Escalate

Oil prices climbed nearly 2% on Friday after a Ukrainian drone strike on a major Russian port disrupted crude-loading operations, overshadowing concerns about oversupply and weakening U.S. demand.

Brent crude futures rose $1.02, or 1.5%, to $67.39 a barrel by 13:28 GMT, while U.S. West Texas Intermediate (WTI) gained $1.08, or 1.7%, to $63.45.

Latest Oil Prices: 

WTI Crude • 62.69 +0.32 +0.51%

Brent Crude • 66.99 +0.62 +0.93%

Murban Crude • 70.83 +0.93 +1.33

Louisiana Light • 66.16 +0.99 +1.52%

Bonny Light • 78.62 -2.30 -2.84%

Opec Basket • 70.43 +0.00 +0.00%

Mars US • 71.28 -0.98 -1.36%

Gasoline • 1.985 +0.006 +0.31%

Natural Gas • 2.941 +0.007 +0.24%

A senior Ukrainian security official told Reuters that the drone attack targeted Primorsk port in northwest Russia, one of the country’s largest oil and fuel export terminals. The strike forced a temporary suspension of loading operations overnight.

“These attacks on Russian energy infrastructure have the potential to reduce crude and refined product exports,” said Giovanni Staunovo, an analyst at UBS.

Peace Talks Stalled, Risks Rising

The Kremlin announced Friday a pause in peace negotiations with Ukraine after three rounds of direct talks this year in Istanbul failed to narrow differences over a potential settlement. Analysts warn that renewed deadlock could invite fresh Western sanctions against Moscow, further tightening global oil supplies.

“Stronger sanctions could reshape surplus expectations,” noted Ole Hvalbye, an analyst at SEB Research.

Oil benchmarks had slipped earlier in the week, with Brent and WTI down 1.7% and 2% respectively on Thursday, amid forecasts of higher global supply.

The International Energy Agency (IEA) reported on Thursday that worldwide oil output will rise faster than anticipated in 2025, driven by production increases from the OPEC+ alliance, which includes Russia.

However, OPEC’s own report later the same day maintained a relatively bullish outlook, projecting solid growth in global oil demand this year and next, underpinned by steady economic momentum.

Adding to supply concerns, Adani Group, India’s largest private port operator, has banned tankers under Western sanctions from docking at its terminals. The move could limit flows of Russian oil, which India has become the biggest buyer of by sea, much of it shipped on vessels sanctioned by the EU, U.S., and U.K.