Oil prices rise as energy attacks cloud Russia-Ukraine peace prospects

Oil prices edged higher in early Asian trading on Monday after fresh attacks on energy infrastructure in Russia and Ukraine raised doubts over progress toward a peace deal between the two countries.

Brent crude was up 0.86 percent at $61.16 a barrel, while US West Texas Intermediate rose 0.81 percent to $57.20. The gains followed a more than 2 percent drop on Friday, when optimism over peace talks and concerns about oversupply weighed on prices.

Russia struck Naftogaz’s combined heat and power plant in Kherson, causing significant damage and injuring at least one employee, who was taken to hospital. The facility had been a vital source of heating for tens of thousands of residents, highlighting Moscow’s continued focus on Ukraine’s critical infrastructure nearly four years into the conflict.

Ukraine, meanwhile, targeted the Syzran oil refinery in Russia’s Samara region, knocking out its only primary processing unit. Reports said another key unit at the refinery was also hit, marking another blow to Russia’s energy sector.

The latest strikes are part of an ongoing exchange of attacks on energy facilities, with Ukraine aiming to undermine Russia’s energy revenues and Russia seeking to weaken civilian morale as winter sets in.

Despite rising geopolitical risks and concerns over potential supply disruptions in regions including Russia, Ukraine and Nigeria, analysts remain cautious, noting that oil market fundamentals still point to a possible global supply glut in 2026.