Oil prices traded slightly higher on Monday as traders digested new European Union sanctions on Russian energy exports while assessing the potential impact of upcoming United States tariffs on fuel demand, as Middle Eastern producers continue to raise output.
By 2:55 pm AEST (4:55 am GMT), Brent crude futures were up 7 cents, or 0.1%, at US$69.35 a barrel. US West Texas Intermediate crude rose 17 cents, or 0.3%, to $67.51 a barrel.
The EU on Friday approved its 18th sanctions package targeting Russia over the Ukraine conflict. The new measures also include actions against India’s Nayara Energy, a major exporter of refined oil products derived from Russian crude.
Kremlin spokesperson Dmitry Peskov responded, stating that “Russia had built up a certain immunity to Western sanctions”.
The sanctions come in the wake of President Donald Trump’s warning last week that the U.S. may impose penalties on buyers of Russian oil unless Moscow agrees to a peace deal within 50 days.
Separately, Iran - a longstanding oil producer under sanctions - will hold fresh nuclear talks with Britain, France and Germany in Istanbul on Friday, according to a spokesperson for Iran’s Foreign Ministry.
The talks follow European warnings that failure to resume negotiations could result in renewed international sanctions.
In the U.S., oilfield activity continues to decline. The number of operating oil rigs fell by two to 422 last week, its lowest since September 2021, according to Baker Hughes.
U.S. tariffs on EU imports are scheduled to take effect on 1 August, though Commerce Secretary Howard Lutnick said on Sunday he was “confident we'll get a deal done”.
