Oil prices rise as traders weigh supply risks

LONDON, Aug 25 (Reuters): Oil prices climbed on Monday as traders weighed concerns that Russian supply could be disrupted by more US sanctions and Ukrainian attacks targeting energy infrastructure in Russia.

Brent crude futures were up 40 cents, or 0.6 per cent, to $68.13 by 1315 GMT, and West Texas Intermediate (WTI) crude futures gained 46 cents, or 0.7 per cent, to $64.12.

"The market is somewhat concerned that these peace negotiations are going nowhere," said Ole Hansen, head of commodity strategy at Saxo Bank.

"The market is looking for supply to exceed demand in the autumn months, but in the short term that's being challenged by a potential geopolitical disruption."

US President Donald Trump warned again on Friday that he would impose sanctions on Russia if there was no progress toward a peaceful settlement in Ukraine in two weeks.

He has also said he may hit India with harsh tariffs over its purchases of Russian oil.

At the weekend, US Vice President JD Vance said Russia had made "significant concessions" toward a negotiated settlement in the 3-1/2-year war.

Ukraine, which has repeatedly targeted Russian energy infrastructure during the war, launched a drone attack on Sunday that sparked a huge blaze at the Ust-Luga fuel export terminal, Russian officials said.

A fire at Russia's Novoshakhtinsk refinery, caused by a Ukrainian drone attack, was burning for the fourth day on Sunday, the region's acting governor said.