Oil Rises! Russian Sanctions Spark Supply Concerns
Global crude oil prices recorded a slight increase on Friday, after the European Union officially approved a new package of sanctions against Russia. Investors are now monitoring the impact of these measures on global supply, although market uncertainty remains.
Brent crude rose 50 cents (0.72%) to $70.02 per barrel, while US WTI rose 61 cents (0.9%) to $68.15 per barrel. These gains came ahead of the weekend, although both still recorded marginal weekly declines of 0.5% and 0.4%, respectively.
The EU's 18th package of sanctions against Russia lowered the G7 price ceiling for purchases of Russian crude to $47.6 per barrel. However, UBS analyst Giovanni Staunovo said the measure has not yet significantly disrupted Russian exports, leaving the market cautious in its response.
Another factor supporting prices came from drone attacks on oil fields in Iraqi Kurdistan, which have cut the region's production by nearly half. According to PVM analyst Tamas Varga, the attack reduced production from 280,000 to around 130,000 barrels per day. Although no one has claimed responsibility, Iranian-backed militias are suspected.
Meanwhile, US President Donald Trump has added to the uncertainty by threatening additional sanctions on countries that continue to buy Russian oil. Investors are now waiting to see whether Washington will take decisive action or ease pressure if a peace agreement is reached within 50 days.
Source: (ayu-newsmaker)
