Oil prices inched higher on Thursday after Ukraine launched new attacks on Russia’s oil infrastructure, raising concerns about possible supply problems. At the same time, slow-moving peace talks between the U.S. and Russia lowered hopes of any quick deal that might bring more Russian oil back onto global markets. Still, weak overall demand kept the price gains small.
By early Thursday, Brent crude was up 24 cents at $62.91, and U.S. West Texas Intermediate rose 29 cents to $59.24.
The latest tension came after Ukraine struck the Druzhba oil pipeline in Russia’s Tambov region. This is the fifth time Ukraine has hit the pipeline, which sends Russian oil to Hungary and Slovakia. Even so, the pipeline operator and Hungary’s main energy company said the flow of oil was still normal.
According to a report from consultancy Kpler, Ukraine’s drone attacks have now become more organized and steady. Instead of one-time hits, the attacks are happening in cycles aimed at stopping Russia from fully repairing its refineries.
These repeated strikes have pushed Russia’s refining output down to about 5 million barrels per day between September and November — a drop of 335,000 barrels per day compared to last year. Gasoline has been hit the hardest, with gasoil production also falling sharply.
Oil prices were also supported by signs that peace talks may be going nowhere. U.S. President Donald Trump’s team ended their latest discussions with Russia without any clear progress on ending the war. Trump said it’s unclear what will happen next.
Vandana Hari from Vanda Insights said crude prices will probably “stay stuck in a narrow range” as these slow peace efforts continue.
Earlier, traders had expected that a peace deal could eventually lead to lifting sanctions on Russia, allowing more Russian oil back into a global market that already has too much supply. That expectation had pushed prices lower in recent weeks.
Adding to the pressure, Fitch Ratings on Thursday cut its oil price outlook for 2025–2027. The ratings agency said global supply is likely to stay higher than demand, with production expected to keep outpacing consumption.
