Oil Prices Rise Amid Anticipation of Sanctions on Russia and Increased Saudi Supply
Oil prices recorded a slight increase during Monday's trading on July 14, supported by concerns over the potential impact of Western sanctions on Russian supplies, while the rise in Saudi production tempered the upward momentum.
Brent crude futures reached $70.52 per barrel, marking a 0.2% increase, following strong gains of 2.51% on Friday. Similarly, West Texas Intermediate crude futures rose by the same percentage to settle at $68.61 per barrel, after a 2.82% increase in the previous session.
Statements by U.S. President Donald Trump about his intention to send air defense systems to Ukraine and an upcoming "important statement" today regarding Russia, according to Reuters, indicate that geopolitical tensions continue to be a major support for oil prices.
At the same time, both the United States and the European Union are moving towards imposing new sanctions on Moscow, with the U.S. Congress awaiting Trump's signature on a bipartisan bill, while EU envoys are close to agreeing on a sanctions package that includes setting a ceiling for Russian oil prices.
On the other hand, data from the International Energy Agency revealed that Saudi production exceeded the "OPEC+" target in June by 430,000 barrels per day, reaching 9.8 million barrels compared to the agreed target of 9.37 million barrels. Despite Saudi Arabia reaffirming its commitment to agreed quotas, this increase helped curb the sharp rise in prices.
Analyses by ANZ Bank suggest that anticipated Chinese trade data may reveal continued weakness in demand, while markets focus on U.S. tariff talks and their potential impact on global economic growth.
This comes at a time when the International Energy Agency expects the oil market to be tighter than initial estimates suggest, with increased demand during the summer season to keep up with rising travel and electricity generation.
