WASHINGTON (dpa-AFX) - Crude oil shed incrementally on Monday, remaining range-bound amid the high-demand summer season, tariff concerns, and rising supply concerns though EU sanctions on Russia were shrugged off at least for now.
Today, the WTI Crude Oil closed down by $0.14 to settle at $67.20 per barrel.
September month Brent Crude contract was last seen trading today, down by $0.11, to $69.17 per barrel.
As countries race up to sign trade deals with the US, US Commerce Secretary said that 'nothing stops countries from talking to America after August 1st.'
Investors are concerned that heavy tariffs could block international trade and reduce demand for oil and energy.
Last Friday, as a measure of expressing solidarity with Ukraine, the European Union unveiled sanctions on oil supplies from Russia to target the country's ability to increase revenues from its oil and energy sector.
In its 18th sanctions package, the EU agreed to downwardly revise the price cap on Russian oil by 15% to $47.60 from $60.00.
In addition, the sanctions targeted 'shadow fleet ships' used for moving Russian crude oil along with a ban on a major Indian refinery (Nayara Energy Ltd) that uses Russian oil.
Last week, US President Donald Trump had threatened sanctions (or secondary tariffs) of 100% to countries importing oil from Russia as a pressure tactic to end the 3-plus-year Russia-Ukraine war sooner. He gave a 50-day grace period for both countries though to agree for a ceasefire.
But in response, a Russian spokesperson stated that Russia had built up immunity to Western sanctions.
As the Israel-Iran conflict ended with a ceasefire on June 24, Iran's reluctance to give away its nuclear power continued to keep the heat on.
Iran and three European countries (Britain, France, and Germany) are set to hold deputy-level nuclear talks to discuss this matter in Istanbul on July 25. The Western nations have threatened Iran to reach a settlement or face new sanctions.
According to last week's Baker Hughes company's data, crude oil rigs in the US had decreased to 422 on July 18 from 424 in the previous week.
Data from the Joint Organizations Data Initiative (JODI) revealed that Saudi's crude oil exports in May rose (6.191 million bpd) to their highest in three months.
On July 5th, the OPEC+ alliance agreed to boost output by 5,48,000 barrels per day in August, marking the fourth consecutive monthly increase. This was beyond analyst's expectations. The coalition is likely to increase production in September.
In the Middle East, the attacks on two bulk carriers - MV Magic Seas and MV Eternity C - in the Red Sea, two weeks before, by Yemen's Houthi rebels, and their subsequent attack on Israeli ports renewed fresh tensions.
In addition, last Friday's drone attacks on oil fields in Kurdistan in Iraq - supposedly by Iranian militia - disrupting production, have reignited geopolitical tensions and a scare to oil trade and transit.
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