Crude oil edges higher in futures trade as Ukraine strikes Russian energy assets

Crude oil prices rose Rs 35 to Rs 5,561 per barrel in the domestic futures market on Monday after Ukraine launched large-scale drone attacks on Russia's energy infrastructure, disrupting key facilities.

On the Multi Commodity Exchange (MCX), crude oil futures for September delivery increased Rs 35, or 0.63 per cent, to Rs 5,561 per barrel in a business turnover of 6,521 lots.

In addition, crude oil futures for October delivery went up Rs 28, or 0.51 per cent, to Rs 5,554 per barrel in 9,107 lots.

Globally, West Texas Intermediate (WTI) crude oil was trading 0.30 per cent higher at USD 62.88 per barrel while Brent Crude rose 0.21 per cent to USD 67.13 a barrel in New York.

''Crude oil prices are holding steady near USD 63 per barrel, as markets assessed impact of stepped up Ukrainian drone strikes on Russia's oil facilities.

''Sentiment is also being shaped by President Donald Trump's renewed calls for Europe to stop buying Russian oil, along with his reiteration that the US is prepared to impose 'major' sanctions on Russian crude, but only if NATO allies take coordinated action,'' Kaynat Chainwala, AVP, Commodity Research, Kotak Securities, said.

She said the market firmed up after reports of Ukrainian drone strikes on Russian oil assets, including the Primorsk oil port, Russia's largest maritime terminal, which was forced to suspend operations temporarily.

The attacks also hit the Kirishi oil refinery, one of Russia's two largest, further fuelling supply concerns.

Chainwala added that geopolitical risks in Eastern Europe and the threat of tighter sanctions against Moscow are expected to keep crude oil prices volatile in the near term.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)