Oil prices stabilized in early Asian trading on Monday, as markets assessed the European Union’s latest sanctions on Russian crude exports and awaited key developments in U.S. trade policy.
As of 10:10 p.m. ET, Brent crude futures held steady at $69.27 per barrel, while WTI crude edged up 0.1% to $66.09. Both benchmarks had dropped nearly 1.5% last week, marking their first weekly decline since early June.
The EU’s 18th round of sanctions on Russia includes a floating price cap on Russian oil exports, set at 15% below prevailing market prices. This cap, subject to a 90-day transition period, is scheduled to take effect on September 3, aiming to curb Moscow’s oil revenues without disrupting global supply.
According to analysts at ING, the G7’s price cap remains unchanged, underscoring enforcement difficulties, particularly as Russia continues to rely on a "shadow fleet" to bypass restrictions. In response, the EU has blacklisted an additional 105 vessels linked to such activities.
Despite these efforts, markets remain cautious. Analysts believe that unless enforcement is significantly tightened, the actual impact of the sanctions may remain limited.
Meanwhile, attention is turning to the United States, where President Trump is expected to unveil new sanctions and finalize a wave of tariffs scheduled for August 1, adding further uncertainty to the global energy outlook.