Oil prices rise as fighting intensifies in Middle East, Ukraine

what happened

Crude oil and refined-product futures opened the week higher as fighting intensified in the Middle East and the market showed a muted response to President Trump’s agreement easing restrictions on Russian diesel exports. OPIS reported that U.S. oil prices were up 2% at 11 a.m. ET, putting crude on track for a third consecutive session of gains.

The November West Texas Intermediate contract rose $1.89 to $93.74 a barrel, while the more-active December contract added $1.90 to $92.91. December Brent gained $1.92 to $106.64, and January Brent increased $1.93 to $103.18. Diesel contracts moved only slightly: November ULSD slipped 0.05 cent to $4.7379 a gallon, while December rose 0.66 cent to $4.5950. November RBOB advanced 1.48 cents to $3.31, and December climbed 3.27 cents to $3.1861 a gallon.

Prices strengthened after the weekend escalation, when the Houthis launched deadly attacks on Saudi Arabia’s international airport in Riyadh. Markets were also responding to reports of Russian strikes on Ukraine’s energy infrastructure. Although Trump announced an “energy ceasefire” between the countries last week, the attacks increase the likelihood that Ukraine will continue targeting Russian refineries and oil infrastructure.

Sparta Commodities said the U.S. Gulf Coast appears to have avoided major damage from Hurricane Isaias’ approach to refining facilities. The firm noted that daily shut-in and evacuated-rig figures peaked Friday and have since started to decline. Samer Hasn, a senior market analyst at XS.com, said renewed disruption to supplies through the Strait of Hormuz or the Red Sea remained a risk if tensions continued to escalate.

why it matters

Oil markets are balancing potential disruptions to Middle Eastern shipments and energy infrastructure against signs that U.S. Gulf Coast operations are recovering after the hurricane threat. Diesel prices are showing a more mixed response.

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