Oil prices held mostly steady on Monday as markets digested the implications of fresh European Union sanctions on Russian oil exports and weighed concerns over global demand amid rising Middle East output.
Brent crude futures inched up by just 6 cents to $69.34 per barrel at 0344 GMT, after closing 0.35% lower on Friday. U.S. West Texas Intermediate (WTI) crude also rose slightly, gaining 17 cents to reach $67.51, following a 0.30% drop in the previous session.
The modest price changes came after the European Union approved its 18th sanctions package against Russia on Friday. The new measures target oil flows refined from Russian crude, including shipments by India’s Nayara Energy. However, analysts suggest the sanctions have yet to meaningfully sway market sentiment.
“The market’s muted response indicates a lack of confidence in the sanctions’ effectiveness,” ING analysts noted in a statement. Kremlin spokesperson Dmitry Peskov echoed this, stating that Russia had developed “a certain immunity” to Western restrictions.
Adding to the pressure, Middle Eastern producers have continued to ramp up supply. At the same time, fears of potential fuel demand decline loom, especially after former U.S. President Donald Trump threatened sanctions on buyers of Russian exports unless a peace deal is reached within 50 days.
Despite the geopolitical tensions and sanctions, oil traders remain cautious, resulting in only marginal price movements.
