Global oil prices inched upward on Thursday as renewed geopolitical tensions fuelled concerns about potential supply disruptions. Ukrainian strikes on Russian oil infrastructure, combined with a lack of progress in peace negotiations between Moscow and Washington, pushed crude benchmarks slightly higher during early trading.
Brent crude climbed 14 cents to $62.81 a barrel, a gain of 0.22%. U.S. West Texas Intermediate rose 16 cents to $59.11, up 0.27%. While the increases were modest, analysts said the market reaction reflected growing unease over the war’s impact on future oil flows.
Ukrainian forces have intensified long-range strikes on Russian energy assets in recent weeks, targeting refineries, storage sites and transport links. Kyiv argues such operations are intended to weaken Moscow’s military capabilities by reducing revenue from energy exports. Russia has accused Ukraine of attempting to destabilise global oil markets, warning that continued attacks could strain supply chains just as several economies experience renewed demand.
The latest strikes come amid stalled peace talks in Moscow, where five hours of discussions between Russian President Vladimir Putin and a U.S. delegation led by special envoy Steve Witkoff ended without progress. Hopes for a framework that might restore stability to oil exports were dampened by public statements from both sides, which underscored the deep divisions that remain.
Market strategists said traders had been watching the talks closely, anticipating that any diplomatic breakthrough might ease pressure on Russian production and shipments. Instead, the lack of movement—paired with heightened military rhetoric from Moscow—added to expectations that the conflict’s disruption to energy supplies will persist.
Analysts noted that although global inventories remain stable, the risk of new constraints is beginning to shape sentiment. Russia’s oil sector plays a major role in global supply, and even limited disruptions can influence pricing, particularly in periods of geopolitical uncertainty.
Beyond the immediate impact of the strikes, investors are monitoring broader economic indicators. Recent data from major economies has shown mixed trends in industrial output and consumer demand, creating an environment in which traders are reacting quickly to geopolitical headlines.
Energy specialists said price movements are likely to remain sensitive in the days ahead as markets assess both the scale of the damage to Russian infrastructure and the likelihood of further diplomatic engagement. For now, crude benchmarks remain within their recent trading range, but analysts cautioned that any escalation—either on the battlefield or in political tensions—could trigger sharper volatility.
