Oil is approaching its third monthly decline, with a market surplus threatening further price drops. The price of oil remains stable following recent fluctuations as investors analyze economic risks and existing US sanctions against Russian oil companies.
Amid rising volumes of seaborne crude oil shipments reaching record levels, WTI oil futures were around $61 per barrel. Meanwhile, Brent closed Monday below $66. The rapid growth of global oil inventories raises concerns among market participants about a possible market oversupply.
This week, OPEC+ is expected to decide on increasing production, which could create additional pressure on the oil market. Such developments could further depress oil prices, which are already moving towards a third consecutive monthly decline. At the same time, Russia’s ability to maintain high production amid existing sanctions remains in question.
Recently, the administration of US President Donald Trump proposed to Germany a six-month delay to sort out issues with Rosneft’s assets, temporarily lifting sanctions. This underscores Washington’s intentions to complicate Russia’s trade without causing a sharp increase in global market prices.
Traders are focused on the outcome of US-China negotiations, with a meeting between Donald Trump and Xi Jinping expected this week at a summit to sign a trade deal. Meanwhile, European countries, including the United Kingdom, have intensified their sanctions against Russian oil companies, imposing additional restrictions, which include bans on importing Russian liquefied natural gas.
| Oil Type | Price, dollars per barrel |
|---|---|
| WTI | 61 |
| Brent | 66 (below) |
