Activity continues in the oil market: Investments and sanctions keep prices in balance

On the first trading day of the week, oil prices followed a flat course as investors assessed the impact of new measures against Russia on the market. The price of a barrel of Brent crude oil reached 69.34 dollars, an increase of just 6 cents from Friday's close, while US-type WTI crude oil traded at 67.51 dollars.

Within the scope of the 18th sanctions package implemented by the European Union, India-based Nayara Energy, which processes and exports Russian oil products, was targeted once again, while the Kremlin stated that it has gained resilience against Western sanctions.

Some market experts express that expectations for the new sanctions to be fully effective are low. However, it is being discussed that the impact of the import ban imposed on the export of refined Russian oil products to third countries could be greater. Nevertheless, analysts point out that such bans are quite difficult to implement in the field.

Developments regarding oil supply in the US are also on the investors' radar. In the past week, the number of active oil drilling rigs operating in the US fell by two, dropping to 422, the lowest level observed since September 2021. This situation indicates that supply from the US could tighten further.

On the demand side, trade policies are coming to the fore. Despite the US tariffs on imports from the European Union that will come into effect on August 1, the US Secretary of Commerce announced that they are hopeful that a new trade agreement could be reached between the two sides.

On the other hand, investors will have their eyes and ears on oil inventory data. Global markets continue to closely monitor both the tariff process in the US and inventory figures that point to the supply balance. According to experts, Brent oil prices are expected to hover in the 64 to 70 dollar band this week.

News Source: 12punto