Crude Oil Prices Steady as Traders Balance Russia-Ukraine Risks Against Rising OPEC+ Output

Crude Oil prices remained largely flat in Asian trading on Tuesday, holding onto gains from the previous session. Markets are currently balancing potential supply disruptions stemming from the ongoing Russia-Ukraine conflict with increasing crude output from OPEC+ nations.

As of 21:03 ET (01:03 GMT), Brent crude futures for November delivery were up 0.3% at $68.33 per barrel, extending Monday’s gains of over 1%.

Meanwhile, West Texas Intermediate (WTI) crude, which did not settle on Monday due to a U.S. holiday, rose 1.3% from its Friday close, reaching $64.81 per barrel in electronic trading.

Geopolitical Tensions Keep Supply Risks in Focus

Crude oil prices climbed on Monday following reports of renewed Ukrainian drone attacks targeting Russian oil refineries and export terminals. These developments have intensified concerns over potential sanctions and supply constraints.

Expectations for a diplomatic resolution have dimmed after former U.S. President Donald Trump urged Ukrainian President Volodymyr Zelenskyy and Russian President Vladimir Putin to engage in direct talks before considering a U.S.-hosted summit. The lack of progress on that front has added to market uncertainty.

With the prospect of tighter sanctions—particularly from the U.S. and its allies—market participants are bracing for further disruptions to Russian oil exports. While secondary sanctions have been ramped up, their effectiveness in curbing shipments to Asia remains limited for now.

OPEC+ Meeting Looms Amid Concerns of Oversupply

On the other side of the equation, rising production from OPEC+ in recent months has fueled concerns of a potential supply surplus. This increase has helped cap further upward movement in prices.

All eyes are now on the upcoming OPEC+ policy meeting scheduled for September 7. According to a Bloomberg survey, the alliance is expected to maintain current output levels, pausing after recent production hikes.

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Traders will be watching closely for any hints on future production strategy, especially as the group seeks to balance market stability with the shifting global demand outlook.

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