Ukraine attacked a Russian port, and oil prices rose slightly amidst the conflict between geopolitical risks and demand concerns.
2025-09-13 08:21:08
Oil prices rose on Friday after a Ukrainian drone attack halted loading at western Russia's largest port, but gains were limited by concerns about U.S. demand. Brent crude futures settled at $66.99 a barrel, up 0.93%. U.S. crude settled at $62.69, up 0.51%.
Earlier in the day, crude oil reacted to a drone attack on the northwestern Russian port of Primorsk, which an official from Ukraine's State Security Service said had led to the suspension of overnight oil loading operations.
"These attacks on Russian energy infrastructure have the potential to drag down Russian crude oil and refined product exports," said Giovanni Staunovo, an analyst at UBS Group AG.
However, crude oil's gains pared later in the day as traders continued to focus on revisions to the U.S. jobs report released earlier in the week and higher inflation data. The U.S. Labor Department said on Tuesday that the U.S. economy likely created 911,000 fewer jobs than previously estimated in the 12 months through March. The Labor Department said on Thursday that the consumer price index rose 0.4% in August, the biggest increase since January, after rising 0.2% in July. Markets were also focused on sanctions or tariffs imposed by the Trump administration aimed at reducing India's use of Russian crude oil.
Finance ministers from the Group of Seven (G7) met on Friday to discuss possible trade measures such as sanctions and tariffs against countries they believe are "facilitating" Russia's war in Ukraine, according to a statement from Canada's Finance Ministry.
Canada, the current G7 chair, issued a statement saying that the purpose of the G7 finance ministers' meeting was to discuss further measures to increase pressure on Russia to force it to end its war in Ukraine.
They "discussed a range of possible economic measures to increase pressure on Russia, including further sanctions and trade measures such as tariffs on countries that support Russia's war efforts."
British sanctions target a shadowy fleet that transports Russian oil and key military parts suppliers, while British sanctions target 30 entities and individuals that provide key equipment used to build missiles and other weapons systems.
Japan said on Friday that it would also impose sanctions on Russia. Japanese Chief Cabinet Secretary Yoshimasa Hayashi said that Japan has decided to lower the upper limit of Russian crude oil prices from the previous $60 per barrel to $47.6, effective Friday. This move is another action after the European Union lowered the upper limit of Russian oil prices to $47.6 in July. It is also part of the EU's 18th sanctions plan against Moscow.
Trump said on Friday that if new restrictions are imposed on Russia, they would target the banking and oil sectors and could include tariffs. He also said Zelenskyy had not quickly demonstrated a willingness to negotiate on resolving the Ukraine issue. He expressed deep disappointment with the progress of resolving the conflict in Ukraine, noting that other conflicts he had previously pushed for resolution appeared more complex than the Ukraine issue.
Russian presidential press secretary Dmitry Peskov said that one should not be too optimistic about the Ukrainian negotiation process and expect it to produce immediate results.
In response to a question about whether the negotiation process has reached a deadlock, Peskov told reporters: "Of course, we cannot be overly optimistic about the negotiation process and expect it to produce results immediately. I would like to remind everyone here that perhaps you can refer to the words of US President Trump. Trump also said that at first he thought he could solve all the problems in an instant, but later realized that it would take more time."
The International Energy Agency said on Thursday that global oil supply will grow faster than expected this year due to plans by the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, to increase production.
Derren Nathan, head of equity research at Hargreaves Lansdown, wrote that a combination of a surprise 3.9 million barrel build in U.S. inventories last week and heightened concerns about oversupply from OPEC+ members’ plans to increase production have fueled traders’ concerns.
Citigroup published a research report stating that oil prices are in a tug-of-war between increasingly pessimistic fundamentals and intensified geopolitical risks. In response to OPEC+'s decision to gradually withdraw voluntary production cuts from October this year, it assumes that Russia's oil supply is limited to 10.1 million barrels per day due to military conflict, and predicts that Saudi crude oil supply will remain at 10.3 million barrels per day next year. It now reiterates its expectation that Brent crude oil futures prices will fall from the end of this year to next year, and is expected to fall to US$65 per barrel in the next three months and to US$60 per barrel in the next six to twelve months.
Earlier in the day, crude oil reacted to a drone attack on the northwestern Russian port of Primorsk, which an official from Ukraine's State Security Service said had led to the suspension of overnight oil loading operations.
"These attacks on Russian energy infrastructure have the potential to drag down Russian crude oil and refined product exports," said Giovanni Staunovo, an analyst at UBS Group AG.
However, crude oil's gains pared later in the day as traders continued to focus on revisions to the U.S. jobs report released earlier in the week and higher inflation data. The U.S. Labor Department said on Tuesday that the U.S. economy likely created 911,000 fewer jobs than previously estimated in the 12 months through March. The Labor Department said on Thursday that the consumer price index rose 0.4% in August, the biggest increase since January, after rising 0.2% in July. Markets were also focused on sanctions or tariffs imposed by the Trump administration aimed at reducing India's use of Russian crude oil.
Finance ministers from the Group of Seven (G7) met on Friday to discuss possible trade measures such as sanctions and tariffs against countries they believe are "facilitating" Russia's war in Ukraine, according to a statement from Canada's Finance Ministry.
Canada, the current G7 chair, issued a statement saying that the purpose of the G7 finance ministers' meeting was to discuss further measures to increase pressure on Russia to force it to end its war in Ukraine.
They "discussed a range of possible economic measures to increase pressure on Russia, including further sanctions and trade measures such as tariffs on countries that support Russia's war efforts."
British sanctions target a shadowy fleet that transports Russian oil and key military parts suppliers, while British sanctions target 30 entities and individuals that provide key equipment used to build missiles and other weapons systems.
Japan said on Friday that it would also impose sanctions on Russia. Japanese Chief Cabinet Secretary Yoshimasa Hayashi said that Japan has decided to lower the upper limit of Russian crude oil prices from the previous $60 per barrel to $47.6, effective Friday. This move is another action after the European Union lowered the upper limit of Russian oil prices to $47.6 in July. It is also part of the EU's 18th sanctions plan against Moscow.
Trump said on Friday that if new restrictions are imposed on Russia, they would target the banking and oil sectors and could include tariffs. He also said Zelenskyy had not quickly demonstrated a willingness to negotiate on resolving the Ukraine issue. He expressed deep disappointment with the progress of resolving the conflict in Ukraine, noting that other conflicts he had previously pushed for resolution appeared more complex than the Ukraine issue.
Russian presidential press secretary Dmitry Peskov said that one should not be too optimistic about the Ukrainian negotiation process and expect it to produce immediate results.
In response to a question about whether the negotiation process has reached a deadlock, Peskov told reporters: "Of course, we cannot be overly optimistic about the negotiation process and expect it to produce results immediately. I would like to remind everyone here that perhaps you can refer to the words of US President Trump. Trump also said that at first he thought he could solve all the problems in an instant, but later realized that it would take more time."
The International Energy Agency said on Thursday that global oil supply will grow faster than expected this year due to plans by the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, to increase production.
Derren Nathan, head of equity research at Hargreaves Lansdown, wrote that a combination of a surprise 3.9 million barrel build in U.S. inventories last week and heightened concerns about oversupply from OPEC+ members’ plans to increase production have fueled traders’ concerns.
Citigroup published a research report stating that oil prices are in a tug-of-war between increasingly pessimistic fundamentals and intensified geopolitical risks. In response to OPEC+'s decision to gradually withdraw voluntary production cuts from October this year, it assumes that Russia's oil supply is limited to 10.1 million barrels per day due to military conflict, and predicts that Saudi crude oil supply will remain at 10.3 million barrels per day next year. It now reiterates its expectation that Brent crude oil futures prices will fall from the end of this year to next year, and is expected to fall to US$65 per barrel in the next three months and to US$60 per barrel in the next six to twelve months.
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