Oil prices slip amid Russia Ukraine tensions

September 2, 2025 (MLN): Oil prices climbed in early Asian trading on Tuesday, driven by mounting worries over potential supply disruptions as the Russia–Ukraine conflict intensified.

Brent crude futures decreased a little by $1.19, or 1.75%, to $69.34 per barrel.

West Texas Intermediate (WTI) crude futures fell by $1.81, or 2.83%, to $65.82 per barrel by [2:55 pm] PST.

WTI crude futures were not settled on Monday due to the U.S. Labor Day holiday.

According to Reuters estimates, recent Ukrainian drone strikes have taken offline facilities responsible for around 17% of Russia’s refining capacity, equal to about 1.1 million barrels per day.

On Sunday, President Volodymyr Zelenskyy informed that Ukraine would launch new attacks deeper inside Russia following weeks of intensified strikes on Russian energy assets.

Now in its fourth year, the conflict has seen both sides escalate aerial assaults. Moscow has focused on Ukraine’s power and transport infrastructure, while Kyiv has stepped up strikes on Russian refineries and pipelines.

“The risk to Russia’s energy infrastructure remains elevated. Over the weekend, Ukraine targeted more refineries as it broadened its campaign against Russian facilities,” noted Daniel Hynes, senior commodity strategist at ANZ, in a Tuesday report.

Meanwhile, geopolitical uncertainty could deepen following Chinese President Xi Jinping’s push for a “new global order.” At a Monday summit with Russian and Indian leaders, Xi promoted his security and economic vision centered on the “Global South,” in a move seen as a challenge to U.S. influence.

China and India remain Russia’s largest crude buyers, even as Washington has imposed additional tariffs on India over such imports while sparing China.

Market participants are now awaiting the September 7 meeting of OPEC and its partners for guidance on whether the alliance might adjust production levels further.

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