Oil records highest close since June 2022; Brent nears $89

Oil drilling rigs

Oil prices extended gains today, April 2, amid escalating geopolitical tensions in the Middle East, renewed Ukrainian attacks on Russian energy infrastructure, and ahead of the OPEC+ meeting scheduled for April 3.

Brent crude futures for June delivery rose 1.7%, or $1.5, to close at $88.92 per barrel—the highest level since June 28, 2022 ($89.46).

WTI crude for May delivery rose by 1.7%, or $1.44, to $85.15 per barrel—the highest settlement since June 16, 2022 ($87.28).

A Ukrainian drone struck the Taniko refinery, which is the third largest Russian oil refinery, following a series of similar attacks in March that led to Moscow losing approximately 14% of its refining capacity, Reuters reported.

The American Petroleum Institute's report on oil inventories is expected later today, and the US Energy Information Administration is scheduled to issue official inventory data on April 3, amid expectations that crude inventories will fall by 300,000 barrels.