WTI Crude Climbs 1.9% to $93.59 as Ukraine Strikes Hit Energy

Front-month West Texas Intermediate crude oil advanced 1.9% Monday to $93.59 per barrel, while the global benchmark Brent crude contract rose 1.7% to $106.53 per barrel. The price gains followed reports of Russian strikes targeting energy facilities in Ukraine. These developments occurred despite President Donald Trump announcing an energy ceasefire between the countries last week.

Energy equities reflected the broader commodity strength late Monday afternoon. The NYSE Energy Sector Index and the State Street Energy Select Sector SPDR ETF (XLE) each added 1.3%. In contrast, the Philadelphia Oil Service Sector Index decreased 0.2%, and the Dow Jones US Utilities Index was up 0.4%. Henry Hub natural gas futures moved in the opposite direction of crude, falling 1.6% to $3.17 per 1 million BTU.

In corporate news, UBS published a note stating that Ovintiv (OVV) is expected to provide a positive third-quarter update. The bank noted that strong Permian well performance is offsetting some of the production impact caused by ongoing midstream constraints in the Montney region. UBS maintained its buy rating on the stock with an $85 per share price target. Ovintiv shares were up 2.1% in trading.