HOUSTON: Oil prices rose USD1 a barrel on Monday following drone attacks by Ukraine, the closure of Venezuelan airspace by the United States, and OPEC’s decision to leave output levels unchanged in the first quarter of 2026.
Brent crude futures advanced $1, or 1.6 percent, to USD63.38 a barrel by 9:14 a.m. CDT (1514 GMT). US West Texas Intermediate crude gained 94 cents, or 1.61 percent, to USD59.49 a barrel.
“Ukrainian drone attacks on Russian shadow fleet as well as a commitment by OPEC to maintain current production levels has the market in an optimistic state,” wrote Phil Flynn, senior analyst for the Price Futures Group, in a note. “This comes as global oil demand continues to rise despite the negativity that we continue to hear on the demand side of the equation.”
Attacks on CPC terminal boosts prices
The Caspian Pipeline Consortium, which carries 1 percent of global oil, said on Saturday that one of the three mooring points at its Novorossiysk terminal had been damaged, halting operations. But Chevron, a CPC shareholder, said late on Sunday that loadings were continuing at Novorossiysk. Usually, two moorings are engaged in loadings, while one is used as a backup.
The attacks on the CPC export terminal drove oil prices higher, UBS analyst Giovanni Staunovo said.
They came as Ukraine stepped up its military operations in the Black Sea and hit two oil tankers, which were heading to Novorossiysk. Meanwhile, the Organization of the Petroleum Exporting Countries and its allies initially agreed on a pause in early November, slowing a push to regain market share with looming fears of a supply glut.
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