Oil Prices Steady Amid EU Sanctions and U.S. Tariff Uncertainty

Oil prices were little changed on Monday as markets balanced concerns over new European Union sanctions on Russian oil with broader demand worries tied to upcoming U.S. tariffs and increased output from Middle East producers, as reported by Reuters.

Brent crude fell by 10 cents to $69.18 a barrel, while U.S. West Texas Intermediate (WTI) edged down by 1 cent to $67.33, following small losses in the previous session.

On Friday, the EU approved its 18th sanctions package against Russia, which includes a ban on refined oil products made from Russian crude in third countries—potentially affecting exporters like India’s Nayara Energy. However, analysts at ING said markets appear unconvinced of the sanctions’ impact due to enforcement challenges.

Meanwhile, geopolitical risks persist as Iran prepares for nuclear talks with the UK, France, and Germany. The talks come amid warnings that failure to resume negotiations could lead to renewed sanctions.

In the U.S., the oil rig count fell to its lowest level since September 2021, according to Baker Hughes. Yet pressure remains, with new U.S. tariffs on EU imports set to begin on August 1. While U.S. officials express optimism about a potential trade deal, market uncertainty lingers.

Analysts expect oil to remain rangebound between $64 and $70 per barrel in the short term, with inventory data and geopolitical developments likely to drive any breakout.

Kursiv Uzbekistan also reports that China has broken ground on what is set to become the world’s largest hydropower project.