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International trade

Oil Prices Rise Amid Supply Risks and Global Trade Tensions

Strategic Insights

— 1 min read

Oil prices surged on Monday, driven by concerns over supply risks and the possibility of further sanctions on Russia. The price of Brent crude oil rose to USD71.35 a barrel, while West Texas Intermediate crude increased to USD69.35 a barrel. The increase in oil prices was attributed to expectations of additional sanctions on Russia, which is one of the world's largest oil producers. The US is reportedly preparing a package of sanctions against Moscow, which could limit its ability to sell oil on global markets.

Key Takeaways:

  • Oil prices rose by 3.5% on Monday, with Brent crude reaching USD71.35 a barrel and West Texas Intermediate crude increasing to USD69.35 a barrel.
  • The increase was driven by concerns over supply risks and the possibility of further sanctions on Russia, which is one of the world's largest oil producers.
  • The US is reportedly preparing a package of sanctions against Moscow, which could limit its ability to sell oil on global markets.
  • Hargreaves Lansdown analyst Susannah Streeter noted that Russia is a key player in the global oil market, and potential sanctions could have a significant impact on supply.
  • The EU is also expected to agree on another package of sanctions on Moscow, which could further restrict Russia's oil sales.
  • Concerns over US tariffs kept a lid on rising oil prices, as Trump threatened new 30% tariffs on the EU and Mexico on Saturday.
  • ING analysts Warren Patterson and Ewa Manthey noted that tariffs are taking centre stage once again, and oil demand concerns are starting to re-emerge.

Statistics:

  • Brent crude oil price: USD71.35 a barrel (up from USD68.95 on Friday)
  • West Texas Intermediate crude price: USD69.35 a barrel (up from USD67.05 on Friday)
  • Gold price: USD3,371.47 an ounce (up from USD3,346.51 on Friday)
  • Silver price: USD39.08 an ounce (up from USD37.57)
  • Platinum price: USD1,389.39 an ounce (up from USD1,366.85)
  • Palladium price: USD1,236.01 an ounce (up from USD1,177.63)
  • Copper price: USD9,645.00 per tonne (down from USD9,744.00)
  • Aluminium price: USD2,593.00 (down from USD2,611.00)

Sources:

  • Alliance News
  • Hargreaves Lansdown
  • ING
  • XS.com
  • AFP
  • US Department of State
  • EU Council
  • European Commission

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