Oil prices inched upward on Monday, building on Friday’s strong gains as markets remained watchful of potential new U.S. sanctions on Russia. The geopolitical uncertainty is fuelling concerns about global supply disruptions, even as increased Saudi output and lingering tariff issues cap the upward trend.
By 0400 GMT, Brent crude futures rose by 15 cents to trade at $70.51 per barrel, extending Friday’s 2.51% rally. Meanwhile, U.S. West Texas Intermediate (WTI) crude climbed 14 cents to $68.59, following a 2.82% gain in the previous session.
The renewed momentum in oil markets comes amid escalating geopolitical tension. U.S. President Donald Trump announced on Sunday that the U.S. would send Patriot air defence systems to Ukraine. He also hinted at a forthcoming “major statement” on Russia, raising speculation about further sanctions.
Trump has grown increasingly critical of Russian President Vladimir Putin over Moscow’s unrelenting assault on Ukrainian cities and the stalled peace negotiations. A bipartisan sanctions bill targeting Russia gained traction in Congress last week, aimed at pressuring the Kremlin into constructive dialogue. However, the legislation is still awaiting Trump’s endorsement.
Market analysts caution that while sanctions could tighten supply, the potential increase in Saudi oil production and uncertainty around global tariffs may temper further gains in oil prices.
