Enforcing tough measures against one of the world's top oil producers risks triggering a supply shock.
Crude oil dropped to $60.12, testing the 20-day average, with a close below $60.23 eyeing $59.72.
The crude oil market has fallen again in the early hours of Tuesday, as we continue to see a lot of volatility out there. With this, the oil market sees a lot of selling pressure after the knee-jerk reaction to the Russian sanctions.
OpenAI urged the White House to substantially increase the U.S. investment in new energy capacity to stay ahead of China in AI. The startup has been planning ambitious infrastructure buildouts that will require massive amounts of power.
Iraq is in negotiations over the size of its OPEC quota within its available capacity of 5.5 million barrels per day, oil minister Hayan Abdel-Ghani said at an oil conference on Monday.
Oil prices rose in early trade on Monday after U.S. and Chinese economic officials sketched out a trade-deal framework, easing fears that tariffs and export curbs between the world's top two oil consumers could dent global economic growth.
A bullish reversal forms in crude oil, but further gains depend on Russian supply cuts and a breakout above key resistance at $63.74.
The U.S.'s decision was surprising given Trump's “longstanding focus on bringing down energy prices,” one analyst noted.
A parallel market for the oil of sanctioned countries will adjust to the latest U.S. restrictions.
U.S. crude futures eased in early trade on Friday, trimming part of the previous day's surge but remaining on track for a weekly gain, as fresh U.S. sanctions on Russia's two biggest oil companies over the war in Ukraine fuelled supply concerns.
Oil rallied after the US and EU announced sanctions on Russia's biggest producers. @MitchellFerman breaks down how Trump is ramping up pressure on Putin to negotiate an end to the war in Ukraine Click Here
Brent crude and West Texas Intermediate futures jumped 5% following new U.S. sanctions on Russia's largest oil producers to curb Russia's ability to fund its war in Ukraine.