Oil prices are falling for the third consecutive month due to oversupply
Oil continues to get cheaper as fears of market oversaturation and expected OPEC+ decisions to increase production weigh on quotations. Western sanctions against Russian oil companies also play an important role.
WTI crude futures settled at around 61 dollars per barrel, while Brent ended trading below 66 dollars. The increase in crude oil maritime shipments indicates growing global reserves, adding pressure to the market. US sanctions against major Russian oil companies, particularly Rosneft and Lukoil, contributed to a temporary price hike but generally affected market volatility.
The Trump administration is attempting to complicate Russian trade without causing a sharp price increase by offering Germany a six-month postponement that temporarily lifts sanctions on Rosneft assets. Analysts note that tensions between the US and Russia, as well as the lack of significant progress in peaceful resolution with Ukraine, are likely to enhance market instability.
Traders are closely monitoring the progress of negotiations between the US and China, which could conclude with a trade agreement. The planned meeting between Donald Trump and Xi Jinping underscores the importance of further developing trade relations.
At the end of last month, the US imposed sanctions against Rosneft and Lukoil as a response to Russia’s actions in Ukraine. The sanctions pressure was soon reinforced by the UK and the EU, which additionally restricted the import of Russian LNG.
| Oil Brand | Price (dollars per barrel) |
|---|---|
| WTI | 61 |
| Brent | 66 |
