Oil prices were little changed on Tuesday after rising in the previous session. The slightly weaker US dollar provided some support as concerns grew about the loss of refining capacity in Russia after Ukraine’s latest attacks.
May Brent crude futures were up 7 cents at $86.82 a barrel, while West Texas Intermediate (WTI) crude futures were up 6 cents at $82.01 a barrel at 05:41 GMT.
Brent rose 1.5% in Monday’s session, while WTI rose 1.6% after the Russian government ordered companies to cut production in the second quarter to meet a 9 million barrel per day (bpd) target to meet commitments made to the OPEC+ consumer group.
Russia, one of the world’s top three oil producers and one of the largest exporters of petroleum products, is also struggling with Ukraine’s recent attacks on its oil refineries.
The impact of refining disruptions on crude prices is mixed. There is a bearish effect from a decrease in demand for refined products and a bullish effect from a potential decline in Russian oil exports.
Following the Ukrainian drone attack on Saturday, Russian oil producer Rosneft shut down its 70,000 barrel-per-day crude oil unit at the Kuibyshev refinery in the city of Samara.
Although the consequences of the attacks and Russian disruptions appear uncertain, the slight weakening of the US dollar compared to the previous session has supported prices somewhat.
The weakening of the dollar makes oil purchases cheaper in other currencies, which can support overall demand.
Meanwhile, the USD may continue to face downward pressure as the Fed is expected to cut interest rates later this year, potentially providing a bullish factor for oil prices.
As the Israel-Gaza conflict continues, increasing geopolitical concerns also support prices.
