Brent oil futures rise as Russia flows, U.S. policies in focus

Oil prices gained ground on Tuesday, as Ukraine war escalations raised questions over the resilience of Russian supplies, while uncertainty lingers over the impact of Washington’s policies on key oil consumers.

Brent futures with November expiry were at $68.56 per barrel at 10:21 a.m. London time ET, up 0.6% from the Monday close.  

The front-month October Nymex WTI contract was trading at $65.05 per barrel, higher by 1.62%. WTI futures did not settle on Monday because of the U.S. Labor holiday.

Russia supply

Moscow and Kyiv have ramped up fire exchanges in their three-and-a-half-year conflict, with Reuters calculations pointing to Ukrainian drone attacks shutting down facilities accounting for at least 17% of Russia’s oil processing capacity. CNBC could not independently verify the report.

Ukrainian President Volodymyr Zelenskyy vowed “new deep strikes” against Russia in a social media post over the weekend, without disclosing details. His pledge comes amid stalling U.S. and European efforts to draw Kremlin leader Vladimir Putin into conceding to bilateral ceasefire talks with his Ukrainian counterpart.

The White House has separately piled on indirect pressure on Russia’s oil consumers, implementing additional levies on imports of Indian goods it attributed to New Delhi’s ongoing purchases of Moscow’s crude. India has criticized the impositions as “unfair, unjustified and unreasonable.”

In a further sign of deteriorating relations, U.S. President Donald Trump on Monday doubled down on lambasting Washington’s trade ties with India as a “totally one sided disaster.”

Critically, Washington has yet to move against China, the world’s largest crude importer and Russia’s biggest oil buyer since the introduction of G7 sanctions. Putin, Chinese President Xi Jinping and Indian Prime Minister Narendra Modi met at this week’s Shanghai Cooperation Organization (SCO) summit, in a show of Global South unity.