Oil prices held steady on Monday as traders weighed new European sanctions on Russian oil supplies against concerns that rising output from the Middle East and looming U.S. tariffs could dampen global fuel demand. Brent crude edged up by 6 cents to $69.34 a barrel, while U.S. West Texas Intermediate rose 17 cents to $67.51 by early Asian trading.
The European Union’s newly approved 18th sanctions package targets Russian crude flows, including refined products exported by India’s Nayara Energy. However, analysts at ING noted the market’s muted response, suggesting doubts over the enforceability of measures that ban oil products processed from Russian crude in third countries.
Kremlin spokesperson Dmitry Peskov downplayed the sanctions’ impact, claiming Russia has developed “immunity” to Western penalties. Meanwhile, U.S. President Donald Trump has threatened further sanctions on buyers of Russian exports unless a peace agreement is reached within 50 days.
Market sentiment is also shaped by upcoming Iran nuclear talks in Istanbul and a drop in U.S. drilling activity, with Baker Hughes reporting the lowest rig count since September 2021. Tariff tensions remain in focus as the August 1 deadline for U.S. levies on EU imports approaches, though U.S. officials remain hopeful for a deal.
Analysts say oil markets may find short-term support from inventory data, but broader price direction hinges on geopolitical developments and trade negotiations in the coming weeks.
