As of the morning of October 24, oil prices are showing a decline after a previous increase, although the market remains close to a four-month record in terms of rising rates. The main cause for concern remains the new US sanctions imposed against Russian oil giants “Lukoil” and “Rosneft.” These restrictions have heightened fears regarding the stability of Russian crude supplies to the global market.
This is reported by Finway
Price Dynamics and Market Reaction
According to information from the Investing portal, at 10:03 AM Kyiv time, a barrel of Brent crude oil fell by 17 cents, reaching $65.82. American WTI crude oil also dropped in price by 16 cents, to $61.63 per barrel.
Analysts indicate that the market is showing a measured response to geopolitical risks. Vandana Hari, the founder of the analytical company Vanda Insights, noted that after a significant rise in quotes during the previous session, the current morning decline indicates a lack of serious concerns regarding disruptions in Russian oil supplies.
“Oil prices are stabilizing, with some profit-taking observed, indicating that the market is not panicking over Russian supplies,” the expert states.
Import Restrictions and OPEC+ Position
In response to the sanctions, a number of Asian buyers have begun to adjust their purchasing policies. Reports indicate that Chinese state-owned refineries have temporarily suspended imports of Russian oil. Similar intentions to reduce imports are being voiced by representatives of Indian refineries.
At the same time, the Kuwaiti oil minister assured that OPEC+ countries are ready to promptly compensate for any potential market shortages that may arise due to supply restrictions from Russia. It is worth noting that estimates indicate that “Rosneft” and “Lukoil,” which are under sanctions, account for about 5% of global oil production, while Russia remained the second-largest producer of black gold in the world in 2024.