FX.co ★ Oil Little Changed Amid EU Sanctions on Russia

WTI crude oil futures remained stable around $67.1 per barrel on Monday, showing minimal change following a 1.6% decline over the previous week. Market participants are assessing the implications of geopolitical tensions and trade-related uncertainties. Attention is focused on the ongoing trade discussions between the United States and the European Union, with potential U.S. tariffs on EU imports looming on August 1. Concurrently, the EU has intensified its stance on Russia by implementing its 18th sanctions package, which encompasses a reduced price cap on Russian crude, restrictions on refined fuel products, and a prohibition on a significant Indian refinery from using Russian oil. In response, China has opposed EU sanctions targeting its financial institutions and companies, affirming its commitment to defending its economic interests. Additionally, Iran is set to engage in nuclear discussions with EU representatives this Friday, amidst looming threats of possible renewed international sanctions. Meanwhile, increasing oil production from Middle Eastern nations and concerns that tariffs may weaken global demand are contributing to the stabilization of oil prices. In the United States, the number of active oil rigs has decreased to 422, marking the lowest level since September 2021, as reported by Baker Hughes, indicating a cautious approach to domestic drilling activities.