Oil Prices Rise on Fears US Sanctions May Disrupt Russian Supply
Oil prices extended their gains after President Donald Trump issued a stern warning to Russia, threatening "secondary sanctions" if Moscow fails to reach a ceasefire deal with Ukraine within 10 to 12 days. The threat raised concerns about possible disruptions to Russian crude supplies, pushing Brent above $70 a barrel.
Brent crude rose 2.3% in the previous session — the largest daily gain in two weeks — and continued climbing in early London trading. Bullish sentiment returned to the options market, with call options on Brent commanding a premium over puts for the first time in two weeks. “This shortened timeline is seen as escalatory,” said Keshav Lohiya, founder of Oilytics. “But Trump may ease off if prices spike too fast.”
Trump's move follows new EU sanctions on Russia, which included penalties on India’s Nayara Energy, leading the company to reduce processing rates at one of its refineries. Meanwhile, traders are also eyeing the US deadline for trade deals on August 1 and the upcoming OPEC+ meeting, which will set output levels for September.
Despite the recent rally, analysts warn the market may face a supply glut later this year as OPEC and its allies continue to pump more oil. Brent for September settlement gained 0.6% to $70.46 a barrel at 10:40 a.m. in London, while West Texas Intermediate (WTI) for September delivery climbed 0.7% to $67.21.
Source: Newsmaker.id
