2025.09.1213:03:50UTC+00Oil Rises as Ukrainian Drones Strike Oil Hubs

WTI crude oil futures experienced a more than 1.5% increase, reaching $63.5 per barrel on Friday, following a Ukrainian drone strike that disrupted operations at Russia's Primorsk port, the nation's largest oil terminal. The incident led to the suspension of activities at both Primorsk and the associated pumping stations responsible for transferring oil to Ust-Luga. Although these claims have yet to be verified, satellite imagery confirmed the presence of two tankers docked at the port, and officials noted that a fire aboard one vessel was swiftly extinguished. This attack, one of the most significant from Ukraine, has intensified concerns over supply security. Concurrently, the International Energy Agency (IEA) forecasted an increase in global supply due to heightened output from OPEC+, with Saudi Arabia ramping up its oil exports to China to 1.65 million barrels per day this October. OPEC has sustained its robust demand projections for 2025–2026. In contrast, Russia's oil revenues plummeted close to record lows in August, and scheduled shipments at Knorrino port are expected to decrease. Market sentiment benefited from anticipation of Federal Reserve interest rate cuts following lackluster US economic data, which may elevate demand, even as US crude oil stockpiles expanded by 3.9 million barrels.