Oil prices rose on Monday after Russia-Ukraine fighting intensified over the weekend even as concerns about fuel demand in China, the world's second-largest consumer, and forecasts of a global oil glut weighed on markets.
Brent crude futures rose 20 cents (0.3%) to $71.24 a barrel while U.S. West Texas Intermediate crude futures were flat. was at $67.11 a barrel up 9 cents (0.1%).
In a significant reversal of Washington's policy in the Ukraine-Russia conflict, President Joe Biden's administration has allowed Ukraine to use U.S.-made weapons. to invade far into Russia.
Russia has not given any response following the warning of the relaxation of limits on the use of US weapons on Ukraine as a major escalation of the conflict.
However, Russia launched its biggest airstrikes on Ukraine in almost three months on Sunday causing severe damage to Ukraine's power systems.
In Russia, at least three refineries have been forced to halt processing or reduce operations due to heavy losses amid export restrictions, rising crude prices and high borrowing costs.
Brent and WTI fell more than 3% last week on weak data from China and after the International Energy Agency forecast that global oil supply will outpace demand by more than 1 million barrels a day in 2025 despite cuts from OPEC+.
China's refinery output fell 4.6% in October from a year earlier and as the country's factory output growth slowed last month, government data showed on Friday.
