Ammon News - Oil prices edged higher on Monday after Ukraine stepped up attacks on Russia, fanning concerns Russian oil supply could be disrupted, while expectations of a cut in U.S. interest rates buoyed the outlook for global growth and fuel demand.

Brent crude futures rose 3 cents, or 0.04%, to $67.76 at 0342 GMT, and West Texas Intermediate (WTI) crude futures gained 7 cents, or 0.11%, to $63.73.

Ukraine launched a drone attack on Russia on Sunday, which forced a sharp fall in the capacity of a reactor at one of Russia's biggest nuclear power plants and sparked a huge blaze at the Ust-Luga fuel export terminal, Russian officials said.

However, U.S. President Donald Trump also renewed threats on Friday that he would impose sanctions on Russia if there was no progress toward a peaceful settlement in Ukraine in two weeks.

Investors' risk appetite has improved after Federal Reserve Chair Jerome Powell on Friday signaled a possible interest rate cut at the U.S. central bank's meeting next month. Reuters