Global factors keep oil prices range-bound
Oil prices were little changed on Monday as traders assess the impact of new European sanctions on Russian oil supplies while they also worry about tariffs possibly weakening fuel demand as Middle East producers are raising output.
Brent crude futures climbed 6 cents to $69.34 a barrel by 0344 GMT after settling 0.35% lower on Friday. U.S. West Texas Intermediate crude was at $67.51 a barrel, up 17 cents, following a 0.30% decline in the previous session.
The European Union approved on Friday the 18th package of sanctions against Russia over the conflict in Ukraine, which also targeted India's Nayara Energy, an exporter of oil products refined from Russian crude.
Kremlin spokesperson Dmitry Peskov said on Friday that Russia had built up a certain immunity to Western sanctions.
The EU sanctions followed U.S. President Donald Trump's threats last week to impose sanctions on buyers of Russian exports unless Russia agrees a peace deal in 50 days.
ING analysts said the lack of reaction showed the oil market is not convinced by the effectiveness of these sanctions.
"However, the part of the package likely to have the biggest market impact is the EU imposing an import ban on refined oil products processed from Russian oil in third countries," the analysts led by Warren Patterson said.
"But clearly, it will be challenging to monitor crude oil inputs into refineries in these countries and, as a result, enforce the ban."
Iran, another sanctioned oil producer, is due to hold nuclear talks in Istanbul with Britain, France and Germany on Friday, an Iranian Foreign Ministry spokesperson said on Monday. That follows warnings by the three European countries that a failure to resume negotiations would lead to international sanctions being reimposed on Iran.
In the U.S., the number of operating oil rigs fell by two to 422 last week, the lowest since September 2021, Baker Hughes said on Friday.
U.S. tariffs on European Union imports are set to kick in on August 1, although U.S. Commerce Secretary Howard Lutnick said on Sunday he was confident the United States could secure a trade deal with the bloc.
"U.S. tariff concerns will continue to weigh in the lead up to August 1 deadline, while some support may come from oil inventory data if it shows tight supply," IG market analyst Tony Sycamore said.
"It feels very much like a $64-$70 range in play for the week ahead."
Brent crude futures have traded between a low of $66.34 a barrel and a high of $71.53 after a ceasefire deal on June 24 halted the 12-day Israel-Iran war.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Memri
31 minutes ago
- Memri
Russian Media Outlet RuNews24: 'China Openly Sides With Russia; The Game of Neutrality Is Over; Why This Changes Everything'
On July 20, 2025, Russian media outlet RuNews24 wrote an analysis titled "China Openly Sides With Russia; The Game of Neutrality Is Over; Why This Changes Everything." During a meeting with Kaja Kallas, High Representative of the European Union for Foreign Affairs and Security Policy, Chinese FM stated that Beijing cannot allow Russia to lose the war in Ukraine. According to RuNews24, the world enters a new phase of confrontation, with the U.S. and its allies on one side and the emerging Sino-Russian alliance on the other, which no longer hides its intentions. Meeting of Russian and Chinese Foreign Ministers Sergey Lavrov and Wang Yi in Beijing, July 13, 2025. (Source: Chinese Foreign Ministry).[1] Below is RuNews24's article:[2] Chinese Foreign Minister Wang Yi: "Beijing Cannot Allow Russia To Lose The War Against Ukraine" "Just the other day, an event took place that finally dotted all the i's. During a four-hour meeting with European Union head of diplomacy Kaja Kallas, Chinese Foreign Minister Wang Yi said something that had previously been heard only on the sidelines [of international events]. 'Beijing cannot allow Russia to lose the war against Ukraine, as this will grant the United States an opportunity to fully focus on China,' said Wang Yi, thereby completely contradicting China's previously iterated neutral stance in the conflict. These words came as a bolt from the blue for European diplomats. This is the first time a Chinese official of such [high] rank had openly acknowledged that Beijing had a direct interest in Russia not losing the war." "Drones That Changed The Game" "But even before this diplomatic acknowledgement, the world saw more concrete actions on the part of China. Zelenskyy stated that 'the Chinese 'Mavic'[3] is open to Russians but closed to Ukrainians.' According to him, 'there are production lines on Russian territory where Chinese representatives work.' "He was talking about the popular DJI Mavic drones, which have become a true workhorse of the SVO.[4] By design, these are ordinary civilian quadcopters for aerial photography, but on the battlefield, they have become the 'eyes' and 'hands' of armies – they are used for reconnaissance and can carry explosives to strike targets. "European officials have confirmed Zelenskyy's words. According to Ukrainian foreign intelligence, 80 percent of critically important electronics for Russian drones are of Chinese origin. What's more, China supplies arms components to 20 Russian military factories." "What's Behind The Numbers" "The scale of China's support for Russia is staggering. Shipments of dual-use goods from China to Russia again exceeded four billion USD in 2024, despite threats of secondary sanctions on the part of the US. During the period of February 2022 – February 2025, [Chinese president] Xi Jinping and [Russian President] Vladimir Putin met and/or spoke on the phone 10 times. Foreign Ministers Wang Yi and Sergey Lavrov held 18 meetings. The frequency of these interactions exceeds any other bilateral relationship for both China and Russia." "Economic War In The Shadows" "Russo-Chinese trade relations also speak for themselves. The share of the Chinese yuan in Russia's international trade has risen sharply since the start of the SVO and subsequent Western sanctions. Before the war, yuan settlements accounted for less than 2 percent of Russia's total trade [settlements], but have grown rapidly, exceeding 30 percent in the beginning of 2023. "China became a critically important market for Russian gas, helping to offset losses from Europe [European export]. Russia began exporting natural gas to China through pipelines in 2019 with the launch of 'Sila Sibiri – 1' pipeline (Power of Siberia-1), which is set to reach full capacity of 38 billion cubic meters [of natural gas] per year by 2025." Why China Is No Longer In Hiding "Beijing has realized a simple truth: China will be left face-to-face with the collective West if Russia loses. Military conflict [in Ukraine] demands a significant portion of the resources of the United States and its European allies. Contrary to its propaganda narrative, China has little interest in a prompt settlement of the conflict via the talks. "In May of 2025, Presidents Xi Jinping and Vladimir Putin issued a joint statement defining new areas of cooperation between China and Russia, including upcoming economic, diplomatic, and military agreements. Both used particularly harsh language in their individual statements, condemning the 'unilateralism, hegemonism, hooliganism, and coercive practices' of the United States. "For Ukraine, the new conditions pose serious problems. Previously, Russia fought almost alone, relying mainly on its own resources. Wherein, Ukraine received assistance from many Western countries – in the form of arms, money, and technology. But now the situation is starting to change. "Now Russia not only increased drone production, but also received support from China, the world's second largest economy, which has huge manufacturing capabilities. This gives the Russian army new advantages and allows it to assert more pressure on the positions of Ukrainian troops." "The New Global Balance Of Power" "In the context of Russia's dispute with the West and the military conflict in Ukraine, China has become the Kremlin's most important and irreplaceable aide. As a result, Sino-Russian relations continue to deepen. "The system that the two countries have been developing for more than three decades, currently dubbed as a 'comprehensive strategic coordination partnership for a new era,' has practically evolved into an informal anti-American alliance and has proven effective in practice. "There is bad news for Americans here too. The proxy war against Russia is too costly for America – we are talking not only about financial costs, but also about the expenditure of military resources. Instead of accumulating military equipment in case of a possible war with China over Taiwan, which, according to analysts, may break out sooner or later, the U.S. is forced to spend everything on the Ukrainian front. "China has demonstrated that it is willing to risk its relations with the West for the sake of a strategic alliance with Russia. "The world enters a new phase of confrontation, with the U.S. and its allies on one side and the emerging Sino-Russian alliance on the other, which no longer hides its intentions. "And this is just the beginning."
Shafaq News
3 hours ago
- Shafaq News
South Lebanon: Israeli attacks leave one dead
Shafaq News – South Lebanon A Lebanese citizen was killed on Thursday after an Israeli drone targeted a vehicle in the border town of Aita al-Shaab, according to Lebanon's Ministry of Health. Local sources reported that another Israeli drone strike hit a wooded area in the town of Beit Lif. In the al-Omra border region, Israeli soldiers opened fire on livestock herders, while flares were launched over the areas of al-Khiam and the orchards of al-Wazzani. Earlier at dawn, an explosion occurred in the village of Houla, reportedly carried out by an Israeli force. The incidents mark another breach of the US-brokered ceasefire implemented on November 27, 2024. Since then, Lebanese authorities have documented over 4,000 Israeli violations, with at least 234 people killed and more than 530 injured. Israel continues to occupy five military outposts in southern Lebanon, despite the ceasefire terms requiring a full withdrawal.
Shafaq News
3 hours ago
- Shafaq News
Dollar prices stabilize in Baghdad, rise in Erbil
Shafaq News - Baghdad/Erbil On Thursday, the exchange rates of the US Dollar against the Iraqi dinar remained stable in Baghdad and edged higher in Erbil market. According to a survey by Shafaq News, the dollar's rates set at 139,500 dinars for every 100 dollars, at the closure of the central Al-Kifah and Al-Harithiya stock exchanges in Baghdad. The selling and buying rates at currency exchange stores in Baghdad reached 140,500 IQD and 138,500 IQD per 100 USD, respectively. Erbil's selling price recorded 139,250 dinars for every 100 dollars, and the buying price was 139,000.
