Oil Futures Rise on Geopolitical Tensions; Ahead of OPEC+ Decision

Oil Futures Rise on Geopolitical Tensio

Oil Futures Rise on Geopolitical Tensions; Ahead of OPEC+ Decision
DAVENPORT, FL (DTN) – Oil futures moved higher Tuesday as escalating military action in the Russo-Ukrainian war, stepped-up U.S. pressure on Russian crude buyers, fresh sanctions targeting Iran’s oil smuggling networks in Iraq, and the approaching OPEC+ meeting lifted prices, while the U.S. summer driving season officially ended with Monday’s Labor Day holiday.

NYMEX West Texas Intermediate for October delivery settled $1.58 higher at $65.59 bbl, and the international crude benchmark ICE November Brent contract gained $0.95 to $69.10 bbl. October RBOB futures fell $0.0739 to $2.0428 gal, while front-month ULSD climbed $0.1046 to $2.3744 gal. The U.S. dollar index advanced 0.630 points to 98.320.

Prices found support as U.S. Treasury Secretary Scott Bessent on Monday accused India and China of financing Russia’s invasion via oil purchases, warning of further enforcement measures. Although Russian crude flows to India have eased in recent weeks, vessel tracking data show shipments largely diverted to China, keeping overall exports steady. Ukrainian drone strikes on Russian refineries and intensified Russian attacks on Ukraine following the Trump-Putin meeting in Alaska further heightened the geopolitical risk premium. The Kremlin on Monday denied speculation of a trilateral U.S.-Russia-Ukraine summit.

Adding to the bullish backdrop, the U.S. on Tuesday announced new sanctions targeting Iran’s oil revenue stream, with measures aimed at pressuring Iranian oil smuggling and sanctions evasion schemes in Iraq. Meanwhile, OPEC+ is scheduled to meet Sunday to decide whether to unwind remaining voluntary cuts from eight members, including Saudi Arabia and Russia, that have kept prices supported in the $60 bbl range.

The U.S. summer driving season, typically the peak demand period in the world’s largest fuel market, wrapped up with Monday’s Labor Day holiday, signaling the start of a slower consumption period heading into the fall.