Daijiworld Media Network – Singapore
Singapore, Sep 15: Crude prices were largely unchanged on Monday after last week’s gains, as markets weighed fresh geopolitical tensions against expectations of an oil surplus later this year.
Brent for November settlement hovered at $67.04 a barrel, while West Texas Intermediate (WTI) for October delivery edged up 0.1% to $62.78. Brent had climbed 2.3% the previous week.
US President Donald Trump renewed pressure on Europe to halt Russian oil imports, warning of “major” sanctions if NATO members don’t act. While most European nations have scaled back purchases, Hungary and Turkey continue buying Russian crude.
Washington is also urging the Group of Seven to consider tariffs of up to 100% on China and India for their Russian oil imports.
Tensions deepened after an Israeli strike in Qatar and Ukrainian drone attacks on Russian refineries, including the massive Kinef site owned by Surgutneftegas, which processes over 20 million tons annually.
“The Ukraine stalemate is the key factor in the oil market and the immediate risk is to the upside from the potential for more sanctions and more strikes on Russian oil export infrastructure,” noted Vandana Hari of Vanda Insights.
However, bearish fundamentals remain. OPEC+ has begun rolling back recent output cuts earlier than planned, and the International Energy Agency projects a record surplus next year. Hedge funds have trimmed bullish bets on US crude to a record low.
“Expectations of an overhang exert a downward push, but only as and when the Ukraine news slows down,” Hari added.