Crude oil yesterday settled up by Rs 5,694, marking a 1.92% gain, as markets priced in potential supply disruptions from Russia following renewed Ukrainian drone attacks targeting critical ports and refineries. The strikes, particularly aimed at the Primorsk export hub, are part of Ukraine’s broader strategy to disrupt Russian energy infrastructure. Goldman Sachs estimates that around 300,000 barrels per day of Russian refining capacity were sidelined due to these attacks in August and early September.

Additional concerns arose as pipeline operators imposed stricter storage limits, intensifying supply bottlenecks. The European Union is also considering additional sanctions against companies in India and China that support Russian oil trade. On the macroeconomic front, market attention remains on the upcoming US Federal Reserve meeting, with a 25 basis point rate cut widely anticipated, which is expected to support economic growth and energy demand in the United States.

US crude inventories for the week ending September 5 rose by 3.9 million barrels to 424.6 million barrels, contrary to forecasts predicting a draw of 1 million barrels. Gasoline stocks increased by 1.5 million barrels to 220 million barrels, while distillate stockpiles surged 4.7 million barrels to 120.6 million barrels, exceeding market expectations.

From a technical perspective, the market is witnessing renewed buying interest, evidenced by a 58.9% rise in open interest, now at 6,863. Support is identified at Rs 5,592, with a potential test of Rs 5,490 if breached. Resistance is positioned at Rs 5,747, and a break above this level could propel prices toward Rs 5,800, indicating continued upward momentum.