Investors continue to monitor the impact of new sanctions against Russia on oil prices.
The oil price was little changed Monday, as traders assessed the impact of European sanctions on Russian supply. They also worried about tariffs that could weaken fuel demand because Middle East producers were increasing output.
Brent crude futures dropped 1 cent to $69.27 per barrel at 0153 GMT, after closing 0.35% lower Friday. U.S. West Texas Intermediate Crude was up 10 cents to $67.44 per barrel after a 0.30% drop in the previous session.
The European Union approved Friday the 18th set of sanctions against Russia for the conflict in Ukraine. These included India's Nayara Energy as an exporter who refines oil from Russian crude.
Dmitry Peskov, the Kremlin's spokesperson, said that Russia has developed a certain immunity against Western sanctions.
The EU sanctions came after U.S. president Donald Trump threatened last week to impose sanction on buyers of Russian goods unless Russia agreed to a peace agreement in 50 days.
Analysts at ING said that the lack of response from the oil markets shows the market's inability to be convinced of the effectiveness of the sanctions.
The analysts, led by Warren Patterson, said that the EU's import ban on refined products made from Russian oil processed in third-country countries is likely to have the greatest impact on the market.
But it is clear that monitoring crude oil inputs to refineries in these nations and enforcing the ban will be difficult.
A spokesperson for the Iranian Foreign Ministry said that Iran, another oil producer sanctioned, will hold nuclear talks with Britain, France, and Germany in Istanbul on Friday. The three European countries had warned that international sanctions would be reimposed if Iran failed to resume talks.
Baker Hughes reported on Friday that the number of oil rigs operating in the U.S. fell two to 422 during the last week. This is the lowest level since September 2021.
U.S. Tariffs on European Union Imports will kick in on 1 August, although U.S. Secretary of Commerce Howard Lutnick stated on Sunday that he is confident the United States can secure a deal with the bloc.
Tony Sycamore, IG's market analyst, said that "U.S. Tariff concerns will continue to weigh as we approach the August 1 deadline. Some support may also come from data on oil inventories if they show a tight supply."
It feels like the range of $64 to $70-$80 is in play for this week.
Brent crude futures traded between a low price of $66.34 and a maximum of $71.53 a barrel after the ceasefire agreement on June 24, which ended a 12-day Israel-Iran conflict. (Reporting and editing by Jamie Freed, Christian Schmollinger, and Florence Tan)
(source: Reuters)
