Singapore — Oil prices nudged higher on Monday, adding to gains of more than 2% from Friday, as investors eyed further US sanctions on Russia that may affect global supplies, but a ramp-up in Saudi output and ongoing tariff uncertainty limited gains.
Brent crude futures rose 15c to $70.51 a barrel by 4am GMT, extending a 2.51% gain on Friday. US West Texas Intermediate (WTI) crude futures climbed to $68.59, up 14c, after settling 2.82% higher in the previous session.
US President Donald Trump said on Sunday that he would send Patriot air defence missiles to Ukraine. He is due to make a “major statement” on Russia on Monday.
Trump has expressed frustration with Russian President Vladimir Putin due to the lack of progress in ending the war in Ukraine and Russia’s intensifying bombardment of Ukrainian cities.
In a bid to pressure Moscow into good-faith peace negotiations with Ukraine, a bipartisan US bill that would hit Russia with sanctions gained momentum last week in Congress, but it still awaits support from Trump.
EU envoys are on the verge of agreeing an 18th package of sanctions against Russia that would include a lower price cap on Russian oil, four EU sources said after a Sunday meeting.
Last week, Brent rose 3%, while WTI had a weekly gain of around 2.2%, after the International Energy Agency said the global oil market may be tighter than it appears, with demand supported by peak summer refinery runs to meet travel and power generation.
However, ANZ analysts said price gains were limited by data showing Saudi Arabia lifted oil output above its quota under oil cartel Opec and allies’ supply agreement.
The IEA said Saudi Arabia exceeded its oil output target for June by 430,000 barrels a day to reach 9.8-million barrels a day, compared with the kingdom’s implied Opec+ target of 9.37-million barrels a day.
Saudi Arabia’s energy ministry said on Friday that it had been fully compliant with its voluntary Opec+ output target, adding that Saudi-marketed crude supply in June was 9.352-million barrels a day, in line with the agreed quota.
Elsewhere, China’s June oil imports increased 7.4% to 49.89-million tonnes from a year earlier, equivalent to 12.14-million barrels a day, reaching the highest daily rate since August in 2023, according to customs data released on Monday.
China was likely to continue stockpiling, but with storage at 95% of the peak inventory build from 2020, these inventories were likely to emerge in “visible” Western market locations that were crucial for price formation, exerting downward pressure on prices, JPMorgan’s research team said in a client note.
Investors are also eyeing the outcome of US tariff talks with key trading partners that could impact global economic growth and fuel demand.
Reuters
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