Crude oil prices fell in Asian trade on Tuesday, extending the previous session’s losses as mounting concerns about excess supply outweighed support from impending United States sanctions on Russian oil.
By 3:30 pm AEDT (4:30 am GMT), Brent crude futures had slipped 43 cents or 0.7% to US$63.77 per barrel, while WTI crude declined 42 cents or 0.7% to US$59.49 per barrel.
Market sentiment remains firmly bearish, with expectations of a supply glut later this year and into 2026 as both OPEC and non-OPEC producers continue to increase output against a backdrop of slowing global demand growth.
Prices were also pressured by reports that Russia’s Novorossiysk port resumed oil loadings on Sunday after a two-day shutdown triggered by a Ukrainian attack, easing near-term supply concerns.
Meanwhile, traders are keeping a close watch on U.S. sanctions targeting Russian oil majors Rosneft and Lukoil, which take effect on 21 November.
The measures have already prompted major buyers, including China, India and Turkey, to halt purchases and secure alternative suppliers.
The U.S. Treasury said on Monday that sanctions imposed on 22 October are already lowering Russia’s oil revenues and are likely to curtail export volumes over time.
The Treasury’s Office of Foreign Assets Control said the sanctions “are having their intended effect of dampening Russian revenues by lowering the price of Russian oil and therefore the country's ability to fund its war effort against Ukraine”.
ANZ analysts added: “Moscow’s crude has begun trading at a significant discount to global benchmarks, as the deadline nears for sanctions.”
Geopolitical risks continue to loom over the market. Recent attacks in Sudan, Iran’s seizure of a tanker in Gulf waters, and the possibility of U.S. military action in Venezuela all pose further threats to global supply and could inject fresh volatility into oil prices.
