Oil Prices Steady Amid Mixed Economic News, EU Sanctions on Russia

Oil prices remain steady despite mixed US economic news and new EU sanctions against Russia. Brent crude futures fell 0.3% to $69.28, while US West Texas Intermediate futures fell 0.3% to $67.34. The EU imposed new sanctions on Russia's oil and energy industries, while US President Trump pushed for a minimum tariff of 15% to 20% in any deal with the EU. Rising inflation can weaken economic growth and oil demand.

Oil prices remained relatively stable despite mixed economic news from the United States and the European Union's new sanctions against Russia. Brent crude futures fell by 0.3% to $69.32 a barrel, while US West Texas Intermediate (WTI) crude futures dropped by 0.3% to $67.38 a barrel [1]. The market's reaction was muted, reflecting investor skepticism about the effectiveness of the new sanctions and President Trump's threats.

The European Union (EU) approved an 18th round of sanctions against Russia, which includes a 15% price cap on Russian oil sold to third countries, down from the initial $60 cap set by the Group of Seven (G7) [2]. The EU also banned the import of petroleum products made from Russian crude, with exceptions for certain countries [2]. These measures aim to further restrict Russia's oil and energy industries.

US economic news was mixed, with single-family homebuilding dropping to an 11-month low in June due to high mortgage rates and economic uncertainty [1]. However, consumer sentiment improved in July, and inflation expectations continued to decline, which could make it easier for the Federal Reserve to reduce interest rates and boost economic growth [1]. Stronger economic growth is expected to boost energy demand.

Major oil producers are pointing to improvement in economic growth for the second half of the year, as seen in China's data showing consistent crude oil throughput in June [3]. The Organization of the Petroleum Exporting Countries (OPEC) expects global trade tensions to ease and economic growth to exceed expectations, which could boost oil demand [4].

Rising inflation remains a concern, as it can weaken economic growth and oil demand. However, the market's focus on improving economic fundamentals and strong seasonal demand has helped support oil prices.

References:
[1] https://www.cnbc.com/2025/07/18/oil-prices-rise-after-eu-new-sanctions-on-russia.html
[2] https://www.capitalfm.co.ke/business/2025/07/eu-announces-18th-round-of-sanctions-against-russia/
[3] https://m.economictimes.com/markets/commodities/news/oil-prices-gain-on-demand-expectations-amid-improving-economy/articleshow/122546323.cms?UTM_Campaign=RSS_Feed&UTM_Medium=Referral&UTM_Source=Google_Newsstand
[4] https://www.wsj.com/business/energy-oil/opec-expects-progress-on-trade-holds-oil-demand-outlook-steady-8aa89baa