Oil Stabilizes, Market Wary of Russian Supply Risks
World oil prices stabilized on Tuesday after four consecutive sessions of decline, with the main focus being on potential Russian supply disruptions. Brent traded around $66.56 per barrel, while WTI held around $62.29. Uncertainty increased after Canadian Prime Minister Mark Carney urged Western allies to immediately impose secondary sanctions on Moscow to tighten pressure on President Vladimir Putin.
President Donald Trump also previously called on European countries to stop buying Russian energy, although so far China—the largest buyer of Russian oil—has not been hit with additional tariffs. This situation has kept the oil market stuck in a narrow range of around $5 per barrel since early August, amid growing concerns about a supply surplus.
The latest report from the IEA indicates a potential supply glut later in the year, driven by the return of OPEC+ production and increased output from producers outside the group. This situation has added pressure on prices, making investors hesitant to take aggressive positions.
In addition, the market is also awaiting confirmation from Iraq, which is likely to soon resume exports through Kurdistan after a delay of more than two years due to a payment dispute. If realized, approximately 230,000 barrels per day could potentially re-enter the global market and increase global oil supply.
Source: Bloomberg.com
