“Oil prices rise after falling amid fears of sanctions against RussiaBrent and WTI crude futures rose by 0.31% and 0.32% respectively, after falling for the previous three sessions. The increase is
due to the potential tightening of sanctions on Russian oil and WTI approaching the $60 support level.
”, — write: unn.ua
DetailsBrent crude futures rose 20 cents, or 0.31%, to $65.55 a barrel at 06:31 GMT (09:31 Kyiv time). US West Texas Intermediate crude futures rose 20 cents, or 0.32%, to $61.98 a barrel.
Some analysts attributed the rise to a technical recovery after Brent and WTI oil prices fell by about 1% in the previous session, with Brent closing at its lowest level since June 5 and WTI since May 30.
“Buyer interest emerged as WTI crude oil prices approached the $60 support level, while increased geopolitical risks and speculation about tighter sanctions on Russian oil also provided support,” said Hiroyuki Kikukawa, chief strategist at Nissan Securities Invest.
G7 finance ministers said on Wednesday they would take steps to increase pressure on Russia, targeting those who continue to increase purchases of Russian oil and those who facilitate circumvention of sanctions.
G7 prepares for new sanctions: the main blow is planned to be dealt to Russia’s oil revenues – Bloomberg01.10.25, 15:51 • 3256 views
In addition, the US will provide Ukraine with intelligence for long-range missile strikes on Russian energy infrastructure, two officials told Reuters on Wednesday, confirming an earlier report by the Wall Street Journal.
US to provide Ukraine with intelligence for deep strikes inside Russia – WSJ02.10.25, 08:53 • 10896 views
This will make it easier for Ukraine to strike oil refineries, pipelines and other infrastructure facilities in order to deprive the Kremlin of revenue and oil, the WSJ notes.
The accumulation of stocks by China, the world’s largest oil importer, also pushed oil prices up, limiting the downside potential, traders note.
However, the US government shutdown exacerbated fears about the global economy, while expectations of increased OPEC+ production put pressure on sentiment, limiting price growth, said Kikukawa of Nissan.
The administration of US President Donald Trump on Wednesday froze $26 billion for Democratic-leaning states, fulfilling a threat to use a government shutdown to target Democratic priorities.
Regarding supply, OPEC+ could agree to increase oil production by up to 500,000 barrels per day in November, three times the increase achieved in October, as Saudi Arabia seeks to regain market share, three sources familiar with the talks said.
This will happen against the backdrop of a decline in demand in the US and Asia.
The US Energy Information Administration (EIA) reported on Wednesday that US crude oil, gasoline and distillate inventories rose last week amid declining refining activity and lower demand.