Oil Prices Rise Slightly As US Eyes More Sanctions On Russia
Crude oil prices inched upward on Monday, building on the notable gains recorded in the previous session, as traders turned their focus to geopolitical developments involving Russia.
The market remained cautious, however, as rising Saudi Arabian production and persistent concerns over global trade tensions tempered the upward momentum.
By nearly 6 AM, Brent crude futures had risen by 8 cents to $70.44 per barrel, following a 2.51 per cent increase on Friday. Meanwhile, US West Texas Intermediate (WTI) crude gained 5 cents to trade at $68.50, after closing 2.82 per cent higher in the last session.
Investor attention has turned to an upcoming announcement from US President Donald Trump, who has said he will deliver a “major statement” on Russia. On Sunday, Trump confirmed that he would authorise the delivery of Patriot air defence missiles to Ukraine, signalling rising tensions between Washington and Moscow.
Trump’s criticism of Russian President Vladimir Putin has intensified in recent days, especially over Moscow’s continued military escalation and failure to engage in peace talks. Momentum is also building in the US Congress for a bipartisan sanctions package aimed at pressuring Russia into negotiations, though it is still awaiting Trump’s backing.
Saudi Output Exceeds OPEC+ Quota, Weighs on Prices
Even as geopolitical tensions support oil prices, market optimism has been restrained by production developments in Saudi Arabia. According to the International Energy Agency (IEA), the kingdom produced 9.8 million barrels per day (bpd) in June, exceeding its OPEC+ target of 9.37 million bpd by 430,000 bpd.
Despite this, Saudi Arabia’s energy ministry maintained on Friday that the country had complied with its voluntary quota. It stated that the volume of marketed crude supplied in June was 9.352 million bpd, which it claims aligns with the agreed production target.
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Broader Economic Concerns and China Trade Data in Focus
In addition to geopolitical factors, investors are closely watching developments in global trade policy. Uncertainty around US tariff discussions with major trading partners continues to cloud the outlook for economic growth and energy demand.
Further market cues are expected from China, with preliminary commodity trade figures due for release later on Monday. Analysts at ANZ suggested that the data could reveal lingering signs of weakness in Chinese demand, further influencing the trajectory of oil prices.
Last week, Brent posted a 3 per cent weekly gain, while WTI rose around 2.2 per cent, buoyed by the IEA’s outlook suggesting the global oil market may be tighter than previously estimated due to seasonal demand linked to travel and power generation.
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