Crude Oil Prices Stable Monday as Middle East Output Rises

Global oil prices remained largely unchanged on Monday as traders weighed the potential effects of fresh European sanctions on Russian oil exports and growing concerns about weakening fuel demand due to tariffs.

At 0153 GMT, Brent crude futures dipped slightly by 1 cent to $69.27 a barrel after closing 0.35% lower on Friday, while U.S. West Texas Intermediate (WTI) crude rose 10 cents to $67.44 a barrel, recovering from a 0.30% drop in the prior session.

Impact of European Sanctions on Russian Oil

The European Union, on Friday, approved its 18th package of sanctions against Russia in response to the ongoing Ukraine conflict. The measures also targeted India’s Nayara Energy, which exports refined oil products derived from Russian crude.

 Despite the sanctions, Kremlin spokesperson Dmitry Peskov asserted that Russia had built up resilience against Western measures, indicating minimal immediate impact on the country’s oil supply chain.

Tariff Worries and Middle East Output

Concerns over global fuel demand also resurfaced as U.S. tariffs on European Union imports are scheduled to take effect on August 1.

U.S. Commerce Secretary Howard Lutnick, however, expressed optimism about securing a trade deal to ease the impact. Meanwhile, Middle Eastern oil producers have been increasing output, adding further uncertainty to price stability.

Geopolitical Developments

Geopolitical risks remain a focal point for traders. Iran, already under international sanctions, is expected to hold nuclear talks with Britain, France, and Germany in Istanbul this Friday. Failure to resume negotiations could result in the reimposition of additional sanctions on Tehran. Oil markets have been volatile, with Brent trading between $66.34 and $71.53 per barrel since a ceasefire on June 24 ended the 12-day Israel-Iran conflict.

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Conclusion

Oil markets are navigating a complex mix of sanctions, tariff threats, and rising supply. Prices remain in a narrow range as traders await clarity on geopolitical negotiations and trade developments.

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