Oil prices slip as traders monitor Russia-Ukraine tensions

August 26, 2025 (MLN): Oil prices dipped slightly on Tuesday after surging nearly 2% in the previous session, as traders closely monitored developments in the Russia-Ukraine conflict for potential effects on regional fuel supplies.

Brent crude futures decreased by $0.44, or 0.64%, to $68.36 per barrel.

West Texas Intermediate (WTI) crude futures fell by $0.52, or 0.82%, to $64.28 per barrel by [12:14 pm] PST.

“The risks for crude oil prices appear skewed toward further gains, especially if prices hold above the $64-$65 resistance level,” analysts at IG told CNBC.

Monday’s rally was largely driven by concerns over supply disruptions following Ukraine’s strikes on Russian energy infrastructure, coupled with expectations of additional U.S. sanctions on Russian oil.

The attacks affected Moscow’s oil processing and exports, caused gasoline shortages in parts of Russia, and were in response to Russian advances on the front lines and attacks on Ukraine’s gas and power facilities.

Barclays, in a client note on Monday, said oil prices remain confined within a narrow range amid geopolitical uncertainty and relatively resilient market fundamentals, according to CNBC.

U.S. President Donald Trump also renewed his threat to impose sanctions on Russia if progress toward a peace deal is not achieved within the next two weeks.

Traders are awaiting the latest U.S. inventory figures from the American Petroleum Institute (API) later in the day, with expectations of declines in crude and gasoline stocks but a potential increase in distillate inventories.

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