CNBC: Oil holds decline as traders assess outlook for Russian supply

CNBC: Oil holds decline as traders assess outlook for Russian supply

Oil prices held steady on Monday, after a significant drop of more than 2% on Friday, as traders assessed the potential impact of U.S. sanctions on Russian oil supplies. The market remained cautious, with Brent crude futures rising 8 cents to $70.44 a barrel and U.S. West Texas Intermediate crude futures climbing to $68.50, up 5 cents [1].

The primary driver for the price movement was the anticipation of further U.S. sanctions on Russia, which could disrupt global oil supplies. U.S. President Donald Trump's announcement of sending Patriot air defense missiles to Ukraine and his frustration with Russian President Vladimir Putin's actions added to the market's uncertainty [1]. Additionally, the European Union (EU) is nearing an agreement on an 18th package of sanctions against Russia, which includes a lower price cap on Russian oil [2].

However, the market's bullish sentiment was tempered by a ramp-up in Saudi Arabia's oil output. Saudi Arabia exceeded its OPEC+ output target for June by 430,000 barrels per day, reaching 9.8 million bpd [1]. This increase in supply from Saudi Arabia helped to limit the gains in oil prices.

Further, the release of China's preliminary commodity trade data later on Monday could provide insights into any signs of weaker demand, which would impact oil prices [1]. Additionally, the outcome of U.S. tariff talks with key trading partners could also influence global economic growth and fuel demand for oil.

Overall, the market's focus remains on the geopolitical tensions and the potential impact on Russian oil supplies. Traders are closely monitoring the developments to assess the future outlook for oil prices.

References:
[1] https://www.cnbc.com/2025/07/14/oil-edges-up-investors-eye-trump-statement-on-russia.html
[2] https://www.thehindubusinessline.com/markets/commodities/eu-envoys-near-agreement-on-lower-russian-oil-price-cap/article69809788.ece