Oil Prices Rise Amid Ukrainian Attacks on Russian Refineries and U.S. Sanctions Threat

Oil prices inched higher on Monday as markets weighed the impact of Ukrainian drone strikes on Russian energy facilities, alongside fresh warnings of sanctions from the United States.

By Monday morning, Brent crude futures were up 32 cents (0.5%) at $67.31 a barrel, while U.S. West Texas Intermediate (WTI) also climbed 32 cents (0.5%) to $63.01.

According to Russian officials, Ukraine launched a large-scale assault involving at least 361 drones overnight, igniting a brief fire at the Kirishi oil refinery in northwest Russia. The facility processes about 355,000 barrels per day, equivalent to 6.4% of Russia’s refining capacity.

The attacks follow Ukraine’s recent strike on Primorsk, Russia’s largest oil-exporting terminal with a capacity of around 1 million barrels per day. Both Brent and WTI contracts gained more than 1% last week amid rising risks to Russian oil infrastructure.

“The attack suggests a growing willingness to disrupt international oil markets, which has the potential to add upside pressure on oil prices,” said JPMorgan analysts led by Natasha Kaneva in a note.

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Analysts warn that if Ukraine continues targeting Russian oil export hubs, supply risks could outweigh concerns over OPEC+’s planned production increases.

“If this marks a strategic shift by Ukraine towards Russian oil exporting infrastructure, it adds upside risks to forecasts,” noted Tony Sycamore, an analyst at IG Markets.

Adding to market uncertainty, U.S. President Donald Trump said on Saturday that Washington is prepared to impose fresh energy sanctions on Russia—provided all NATO allies agree to halt purchases of Russian oil and adopt similar measures.

Meanwhile, investors are closely tracking U.S.-China trade talks in Madrid, which began Sunday. Washington has been pressing allies to impose tariffs on Chinese imports due to Beijing’s continued purchases of Russian crude.

Last week, weaker U.S. job creation data and higher inflation figures fueled worries over growth prospects in the world’s largest oil-consuming economy.