Oil prices advanced on Monday after Ukraine launched fresh drone strikes on Russian energy infrastructure, intensifying supply concerns at a time of strong summer demand. NYMEX West Texas Intermediate October futures rose 1.8% to settle at $64.80 a barrel, while Brent ended 1.6% higher at $68.80. Russian officials said the attacks ignited a major blaze at the Ust-Luga fuel export terminal on the Baltic Sea and continued to burn at the Novoshakhtinsk refinery in the Rostov region, a plant capable of processing about 100,000 barrels a day. The incidents add to a months-long campaign that has repeatedly forced repairs and temporary curtailments at Russian oil and product facilities. Beyond the geopolitical shock, traders also cited a more dovish monetary outlook after Federal Reserve Chair Jerome Powell last week signaled the central bank could cut interest rates as early as September, bolstering expectations for stronger fuel demand. Despite the day’s rally, positioning remains cautious: hedge funds have trimmed net-long wagers on crude to their lowest level in 17 years amid persistent fears of oversupply.