Oil Falls on Fears of Russia-Ukraine Supply Disruptions

Screenshot_26-8-2025_1361_alghad.com
Oil Falls on Fears of Russia-Ukraine Supply Disruptions
Oil prices slipped on Tuesday after climbing nearly 2% in the previous session, as traders closely monitored the ongoing Russia-Ukraine conflict for its potential impact on fuel supplies from the region.اضافة اعلان

Brent crude futures fell by 16 cents, or 0.23%, to $68.64 a barrel as of 00:05 GMT, while West Texas Intermediate (WTI) futures dropped by 16 cents, or 0.25%, to $64.64 a barrel.

Both benchmarks reached their highest levels in more than two weeks on Monday, with WTI futures breaking above their 100-day moving average.

Analysts at IG Bank said in a note:

“Crude oil price risks seem tilted toward further gains, especially if prices maintain movement above the resistance range of $64 to $65.”

Monday’s rally was driven largely by concerns over potential supply disruptions after Ukrainian attacks targeted Russian energy infrastructure, and on expectations of additional U.S. sanctions on Russian oil.

These attacks disrupted oil processing and export operations in Moscow and caused gasoline shortages in certain parts of Russia. They came in response to Moscow's recent military advances and strikes on gas and electricity infrastructure in Ukraine.

Barclays Bank said in a Monday note to clients that oil prices remain in a narrow range amid ongoing geopolitical volatility and relatively resilient economic fundamentals.

Former U.S. President Donald Trump renewed his threat to impose sanctions on Russia if no progress is made toward a peace agreement within the next two weeks.

Traders also await the latest U.S. inventory data from the American Petroleum Institute (API), expected later today. Forecasts point to a decline in crude and gasoline stockpiles, though distillate inventories may increase.