Dhaka, Aug. 26 -- 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 US interest rates buoyed the outlook for global growth and fuel demand.

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.

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

The refinery sells fuel mainly for export and has an annual capacity of ...