Oil prices in global markets are showing a slight increase. As of the morning of July 21, Brent futures rose by 6 cents, reaching $69.34 per barrel, while American oil WTI increased by 17 cents, totaling $67.51 per barrel. Despite this, experts note a general calm in the market.
This is reported by Finway
Impact of EU Sanctions on the Oil Market
Analysts link this trend to a new package of European Union sanctions aimed at the export of Russian oil. The sanctions list also includes the Indian company Nayara Energy, which is involved in the export of petroleum products made from Russian raw materials. At the same time, Kremlin officials claim that the country has already developed a “certain immunity to Western restrictions.”
“Traders are assessing the impact of the new European sanctions on Russian oil supplies. … According to analysts, the sluggish response indicates that the market does not believe in the effectiveness of these measures.”
Experts point out that the market currently remains passive, as it is uncertain about the effectiveness of the new sanctions. However, the EU’s ban on the import of petroleum products made from Russian oil in third countries could significantly affect the global balance of supply and demand in the future.
Doubts About Enforcement of the Ban and the Factor of American Tariffs
Skeptics highlight the difficulty of monitoring compliance with this ban, as determining the origin of raw materials for petroleum products at refineries in different countries is quite challenging. This, they believe, could reduce the effectiveness of the sanctions measures.
Additional uncertainty in the market is raised by the question of the introduction of American tariffs for the European Union. It is known that they are set to take effect on August 1, but U.S. Secretary of Commerce Howard Latnik expressed hope to reach a trade agreement before that date. Experts note that concerns about the potential introduction of tariffs will remain one of the key factors exerting pressure on the oil market in the near future.