Oil Prices Stable, Market Awaits Impact of New EU Sanctions on Russia
World oil prices fluctuated slightly at the start of this week as investors awaited the real impact of new EU sanctions on Russia. Brent crude rose slightly by 6 cents to $69.34 per barrel, while US West Texas Intermediate (WTI) crude rose 17 cents to $67.51 per barrel.
The 18th package of sanctions approved by the European Union last Friday targets Russian oil exports, including India's Nayara Energy, which processes and exports oil products made from Russian crude. However, analysts believe the effectiveness of these sanctions remains questionable due to the difficulty of monitoring the origin of crude oil used in third-country refineries.
In addition to sanctions, concerns about US import tariffs on EU products, which will take effect on August 1, are also looming over the market. These trade tensions, coupled with increased production from Middle Eastern countries, are feared to suppress demand and keep prices restrained.
Meanwhile, the number of operating oil rigs in the US fell to 422, the lowest level since September 2021. Meanwhile, Iran is scheduled to resume nuclear negotiations with European countries. All these factors are predicting oil prices will remain in the $64 to $70 per barrel range in the near term.
Source: Newsmaker
