By: Economy middle east

Oil prices increased on Thursday, December 4th, driven by heightened supply concerns following Ukrainian strikes on Russian energy infrastructure and stalling peace negotiations between Russia and Ukraine. Brent crude futures rose 0.46% to $62.96 a barrel, while U.S. West Texas Intermediate gained 0.56% to $59.28.

The price support followed a Ukrainian drone attack on Russia's Druzhba oil pipeline, the fifth such strike on the route supplying Hungary and Slovakia. According to data firm Kpler, Ukraine's campaign against Russian refineries has become sustained and strategic, using repeated strikes to prevent key facilities from returning to stable operation. This has reduced Russia's average refining throughput to about 5 million barrels per day from September to November, a significant year-on-year drop.

Market sentiment was further bolstered by diminishing hopes for a near-term diplomatic resolution to the war, which had previously pressured prices on expectations that peace would ease sanctions and flood the market with more Russian crude. U.S.-Russia talks concluded without concrete progress. Looking ahead, traders are focused on next week's U.S. Federal Reserve meeting, where an expected interest rate cut could provide additional support for oil demand.