On Monday, oil prices increased, attaining their peak level in three weeks, as investors monitored potential additional U.S. sanctions on Russia that could impact global supplies. Concurrently, the rise in oil imports by China provided further support.
Brent crude futures increased by 58 cents, equivalent to 0.8%, reaching $70.94 per barrel by 0900 GMT, whereas U.S. West Texas Intermediate crude futures advanced by 59 cents, or 0.9%, to $69.04.
Increased crude imports by China, along with anticipations regarding U.S. President Donald Trump’s forthcoming announcement concerning Russia, are bolstering prices, stated UBS analyst Giovanni Staunovo.
On Sunday, Donald Trump announced his intention to send Patriot air defense missiles to Ukraine. He is expected to deliver a “major statement” regarding Russia on Monday, having voiced his dissatisfaction with Russian President Vladimir Putin over the insufficient advancements in resolving the conflict in Ukraine.
To compel Moscow to engage in sincere peace negotiations with Ukraine, a bipartisan bill in the U.S. Congress aimed at imposing sanctions on Russia gained traction last week. Concurrently, European Union representatives are close to finalizing an 18th sanctions package against Russia, which is expected to incorporate a reduced-price cap.
In June, China’s oil imports rose by 7.4% compared to the previous year, totaling 12.14 million barrels per day, marking the highest level since August 2023, as reported by customs data released on Monday.
China is expected to persist in its stockpiling efforts; however, with storage levels reaching 95% of the peak inventory established in 2020, these stockpiles are anticipated to surface in prominent Western market areas that play a vital role in price determination, thereby applying downward pressure on prices, according to a client note from J.P. Morgan’s research team.
Last week, Brent experienced an increase of 3%, whereas WTI recorded a weekly gain of approximately 2.2%, following the statement from the International Energy Agency indicating that the global oil market could be more constrained than it seems.
Investors are closely monitoring the results of U.S. tariff discussions with significant trading partners. According to four EU sources following a meeting on Sunday, envoys from the European Union are nearing an agreement on an 18th package of sanctions against Russia, which would feature a reduced-price cap on Russian oil.