Crude Oil Edges Up on Sep 16, 2025 Amid Russian Refinery Attacks and Fed Meeting Outlook

Oil prices gained modestly on Tuesday after Monday’s rally, as traders weighed risks of supply disruption from Russian refineries hit by Ukrainian drone strikes. Market attention also turned to the US Federal Reserve’s policy meeting and upcoming inventory data, adding further momentum to crude.

Oil Prices Inch Higher

Brent crude futures rose 15 cents to $67.59 a barrel, while US West Texas Intermediate (WTI) also gained 15 cents to $63.45. On Monday, Brent had closed 45 cents higher at $67.44, and WTI settled 61 cents up at $63.30.

Geopolitical Tensions Driving Supply Risks

Ukraine has stepped up strikes on Russia’s energy facilities in a bid to undermine Moscow’s war capabilities. Analysts note that targeting refineries and export hubs, such as the Primorsk terminal, could limit Russia’s oil exports and disrupt global supply chains. Russia remains a major producer, contributing more than 10% of the world’s oil.

Fed Policy and Dollar Impact

Investors are also watching the US Federal Reserve’s September 16–17 meeting, where a rate cut is widely expected, as per news reports. Lower interest rates typically encourage fuel demand. Meanwhile, the US dollar index slipped to a one-week low, making oil more affordable for holders of other currencies, further supporting prices.

Inventory Expectations

Traders are awaiting US crude inventory data due Wednesday. Early forecasts suggest a drawdown of 6.4 million barrels for the week ending September 12, following a 3.9 million-barrel build the previous week. A Reuters poll indicated crude and gasoline stockpiles likely fell, while distillate inventories may have risen.

Read More: Massive Oil Discovery in Andaman Sea: Here Is Why It Could Transform India’s Energy Future.

Conclusion

Global oil markets remain sensitive to geopolitical tensions, monetary policy shifts, and supply demand fundamentals. With refinery attacks in Russia, expectations of a Fed rate cut, and upcoming inventory data, crude prices are likely to stay volatile in the near term.

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