Geopolitical tensions push oil higher ahead of key OPEC+ meeting

WEB DESK: Oil prices edged higher on Tuesday as worries over supply disruptions grew after fresh strikes on Russian energy sites in the ongoing war with Ukraine.

By early Asian trading, Brent crude was up 40 cents at $68.55 a barrel, while US West Texas Intermediate (WTI) rose $1.05 to $65.06. Trading in WTI had been paused on Monday due to the Labor Day holiday in the United States.

Rising tension in the conflict

Ukraine has stepped up its campaign against Russian energy assets, carrying out drone strikes that have knocked out at least 17 percent of Russia’s oil processing capacity, according to Reuters estimates. That amounts to about 1.1 million barrels of daily production.

On Sunday, President Volodymyr Zelenskiy vowed that Ukraine would carry out more strikes deeper inside Russian territory after weeks of intensifying attacks on refineries and pipelines. Russia, in turn, has increased its own bombardment of Ukraine’s energy grid and transport links.

“Ongoing risks to energy infrastructure in Russia remain high. Ukraine struck more Russian oil refineries over the weekend as it ramped up its attacks on infrastructure,” noted Daniel Hynes, senior commodity strategist at ANZ.

Global shifts adding pressure

Beyond the battlefield, wider geopolitical moves are also weighing on oil markets. Chinese President Xi Jinping, speaking at a summit with Russian and Indian leaders, renewed his call for a “new global order” centred on the Global South. Analysts say the pitch represents a direct challenge to US influence.

China and India remain the biggest buyers of Russian oil. While Washington has hit India with fresh tariffs over its purchases, it has not applied the same measures on China.

Investors eye OPEC+ meeting

Markets are now watching for signals from the Organisation of the Petroleum Exporting Countries and its allies, which meet on September 7. Traders are waiting to see if the group will hint at any further changes to output in response to the tightening supply outlook.

For now, oil prices remain sensitive to every new strike and statement, as the war shows no signs of easing and the geopolitical stage grows more crowded.

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