LONDON: As investors watched more US sanctions on Russia that might impact global supply and as tariff uncertainty loomed, oil prices remained stable on Monday, hovering at their highest level in three weeks. By 3:26 p.m. Saudi time, Brent crude futures had increased 16 cents, or 0.2 percent, to $70.52 a barrel, while US West Texas Intermediate crude futures had up 12 cents, or 0.2 percent, to $68.57.
According to UBS analyst Giovanni Staunovo, rising Chinese imports of petroleum and anticipation of US President Donald Trump’s declaration about Russia are helping prices. “With the majority of the inventory built in China and on ships, rather than in key locations, there is still a perceived tightness in the market,” he stated. According to statistics from industry sources and estimates by Reuters, Russia exported 8.98 million metric tonnes of seaborne oil products in June, a decrease of 3.4 percent from May.
Trump declared on Sunday that he will provide Ukraine with Patriot air defence systems. He has voiced his dissatisfaction with Russian President Vladimir Putin about the lack of progress in resolving the crisis in Ukraine and is scheduled to make a “major statement” on Russia on Monday. Last week, a bipartisan US measure that would impose penalties on Russia gathered traction in Congress. Meanwhile, representatives of the European Union are about to agree on the 18th set of sanctions against Russia, which would include a reduction in the ceiling on the price of oil.
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