Oil prices rose amid investor expectations of Trump's statement on Russia
Kyiv • UNN
Oil prices rose by more than 2% due to expectations of new US sanctions against Russia. Increased production by Saudi Arabia and uncertainty with tariffs limit price growth.
Oil prices rose on Monday, adding to Friday's gain of more than 2%. Investors are awaiting new US sanctions against Russia, which could affect global supplies. However, increased Saudi Arabian production and continued uncertainty over tariffs limited the rise. UNN writes about this with reference to Reuters.
Details
By 04:00 GMT (07:00 Kyiv time), Brent crude futures rose 15 cents to $70.51 per barrel, extending Friday's 2.51% gain. US West Texas Intermediate crude futures rose to $68.59, up 14 cents after rising 2.82% in the previous session.
US President Donald Trump said on Sunday that he would send Patriot air defense missiles to Ukraine. On Monday, he is expected to make an "important statement" regarding Russia.
Trump expressed frustration with Kremlin leader Vladimir Putin's actions regarding the lack of progress in ending the war in Ukraine and Russia's intensifying bombing of Ukrainian cities.
In an attempt to pressure Moscow for good-faith peace talks with Ukraine, a bipartisan US bill providing for sanctions against Russia gained momentum in Congress last week, but it is still awaiting Trump's support.
Four EU sources said after Sunday's meeting that European Union officials are close to agreeing on an 18th package of sanctions against Russia, which will include a reduction in the price cap on Russian oil.
Last week, Brent crude prices rose 3%, while WTI crude prices rose approximately 2.2% for the week after the International Energy Agency said the global oil market could be tighter than it appears, amid demand supported by peak summer refinery operations to meet travel and power generation needs.
However, ANZ analysts noted that price increases were limited by data showing that Saudi Arabia increased oil production above its quota within the supply agreement with OPEC and its allies.
According to customs data released on Monday, China's oil imports in June increased by 7.4% to 49.89 million tons compared to the same period last year, equivalent to 12.14 million barrels per day, reaching the highest daily figure since August 2023.
China is likely to continue accumulating inventories, but with storage volumes at 95% of the peak level reached in 2020, these inventories are likely to appear in "visible" Western markets, which play a key role in pricing, putting downward pressure on them, according to a note from J.P. Morgan's research team to clients.
Investors are also monitoring the results of US negotiations with key trading partners on tariffs, which could affect global economic growth and fuel demand.