Oil prices were little changed in Asian trade on Monday after weekly losses, as traders weighed new European sanctions on Russian oil supply and monitored progress on trade talks ahead of President Donald Trump’s tariff deadline.
As of 22:10 ET (02:10 GMT), Brent Oil Futures were unchanged $69.27 per barrel, while West Texas Intermediate (WTI) crude futures edged up 0.1% to $66.09 per barrel.
Oil prices declined nearly 1.5% last week, their first weekly drop this month.
EU agrees on new Russian sanctions The European Union on Friday approved its 18th package of sanctions against Russia, introducing some of the toughest restrictions yet in response to the ongoing war in Ukraine.
Central to the new measures is a floating price cap on Russian crude oil exports, set at 15% below prevailing market prices.
This mechanism, due to take effect on September 3 after a 90-day transition period, is designed to erode Russian energy revenues while avoiding disruptions to global supply.
“It’s important to point out that while the EU has lowered the price cap, the G-7 cap remains unchanged. The EU would need to get the US on board to lower the cap,” ING analysts said in a note.
“The issue is that the G-7 price cap has not been effective, given that Russia built up a shadow fleet of oil tankers to get around it.”
The EU also expanded its blacklist of tankers associated with the so-called Russian “shadow fleet,” sanctioning 105 new vessels.
3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads. ‘Markets not convinced’ by sanctions; await US decision While oil prices were little changed in early Monday trade, the measures are being closely watched by markets for supply implications.
“The lack of reaction shows that the market is not convinced by the effectiveness of these sanctions,” analysts added.
If enforcement is tightened, the restrictions could gradually reduce the global Russian oil supply and put upward pressure on prices.
Investors are awaiting news from the U.S. on possible further sanctions, after President Donald Trump earlier this week threatened sanctions on buyers of Russian exports unless Moscow agrees to a peace deal in 50 days.
Moreover, investors were cautious as U.S. tariffs were set to kick in on August 1.
