Global oil markets are experiencing a significant rise in prices, driven by expectations of new sanctions from the United States against Russia, as well as actions by Saudi Arabia to increase oil production beyond the agreed OPEC+ levels.
This is reported by Finway
Changes in the Oil Market: Quotes and Investor Expectations
The start of the trading session on Monday was marked by further increases in oil prices. Investors are closely monitoring the potential implementation of new American sanctions against Russia, which could lead to a reduction in oil supplies to global markets. According to the latest data, Brent crude oil futures rose by 58 cents, reaching $70.94 per barrel, while American WTI crude increased by 60 cents to $69.04 per barrel.
Additionally, political statements are influencing the situation. U.S. President Donald Trump announced that he would make an “important statement” regarding the Russian-Ukrainian war on July 14. He also expressed dissatisfaction with Vladimir Putin’s actions, emphasizing the lack of progress in ending the war and the intensification of bombings in Ukrainian cities.
“He expressed disappointment with Vladimir Putin over the lack of progress in ending the Russian-Ukrainian war and the intensification of Russian bombings of Ukrainian cities.”
Sanction Pressure and the Role of Saudi Arabia
In the U.S., efforts are intensifying to pass Senator Lindsey Graham’s bill, which proposes the implementation of so-called “hellish” sanctions against Russia. Meanwhile, at the European Union level, ambassadors are close to agreeing on the 18th package of restrictions, which may include lowering the “price ceiling” on Russian oil.
An additional factor contributing to the price increase was the International Energy Agency’s (IEA) statement about high seasonal demand for oil during the summer and maximum refinery utilization to meet demand from the transportation and energy sectors.
At the same time, the dynamics of rising prices are partially restrained by the increase in oil production by Saudi Arabia. According to the IEA, in June the country exceeded the OPEC+ target by 430,000 barrels, reaching 9.8 million barrels per day, although under the OPEC+ agreement this figure was supposed to be 9.37 million barrels per day.