Oil Notches More Gains As Traders Await How Trump Will Deal With Russia

Meanwhile, Ukraine drone strikes make lasting impact on Russian facilities:File Image/Pixabay

Oil trading habits on Thursday continued a pattern established over a week ago, with a focus on how U.S. president Donald Trump will ultimately react to a seeming complete lack of interest by either Russia or Ukraine to reach a ceasefire.

Prices have risen and fallen with little change in trading drivers, and Thursday saw a continuation of modest gains for two key benchmarks: Brent settled up 57 cents at $68.62 per barrel, and West Texas Intermediate settled up 45 cents at $64.60 per barrel.

Russia continued its missile an drone strikes against Ukraine on Thursday, killing at least 21 people in Kiev, while Ukraine staged a drone attack on two Russian refineries.

White House press secretary Karoline Leavitt said, "Perhaps both sides of this war are not ready to end it themselves…..the president wants it to end but the leaders of these two countries need it to end and want it to end."

Ursula von der Leyen, president of the European Union Commission, noted that two Russian missiles had struck near the EU office and that EU countries were working on how to use frozen Russian assets to help Ukraine – in addition to developing a 19th package of sanctions against the former Soviet Union.

But despite geopolitical tensions escalating to new heights, the oil market remains mired in bearish sentiment, and Bloomberg noted that despite a week of modest gains (save for a brief dip), oil was set for a monthly loss due to persistent concerns of a market glut and weak demand.

Other pundits suggested why the Russia/Ukraine conflict wasn’t able to raise oil from its range bound status: Rebecca Babin, a senior energy trader at CIBC Private Wealth Group, explained, "Trump is going to have to decide if he really wants to impose sanctions or give negotiations one more go,” but that “the market is used to the can being kicked down the road, so very minimal risk premium is being priced in."

In other oil news on Thursday, market sources told media that the fuel loading and gas processing complex at the Ust-Luga port on the Russian Baltic Sea, which was hit by a Ukraine drone strike over the weekend, could take months to repair.

Several units at the complex, which is run by Novatek, were damaged in a fire, and all operations were shut, including loadings of fuel.