Oil stabilizes after three-day decline amid Russia sanctions
Oil prices steadied after a three-day decline as investors weighed the effects of Western sanctions on major Russian crude producers alongside mixed U.S. industry inventory data.
Brent crude traded above $64 per barrel, while West Texas Intermediate hovered near $60, News.Az reports, citing Bloomberg.
U.S. President Donald Trump is set to enforce stringent sanctions against Moscow to pressure Vladimir Putin into negotiations to end the war in Ukraine, according to U.S. NATO Ambassador Matthew Whitaker.
U.S. industry reports showed a nationwide crude stock drop of 4 million barrels, along with reductions in gasoline and distillates, although inventories at the key Cushing, Oklahoma hub rose. Official government figures are expected later Wednesday.
Oil is on track for a third consecutive monthly decline, pressured by expectations of a global surplus as OPEC+ increases production. The alliance is scheduled to meet this weekend and may approve further supply hikes. Traders are also monitoring progress toward a U.S.-China trade deal, with a meeting between Trump and Chinese President Xi Jinping set for Thursday.
Last week, the Treasury Department blacklisted Russia’s largest oil producers, Rosneft PJSC and Lukoil PJSC, and market participants are assessing the impact. U.S. officials have indicated that the goal is to make Russian trade riskier without triggering a sharp rise in prices. In Asia, India’s state-owned refiners are evaluating whether to continue importing discounted Russian cargoes via non-sanctioned channels.
Meanwhile, traders are watching the U.S. Federal Reserve’s policy meeting, expected to result in a quarter-point rate cut, which could influence risk appetite across commodities and financial markets.
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