Oil Prices Fall Amidst Trump’s Plan to Sanction Russia
Oil prices fell on Tuesday as geopolitical risks and market fundamentals continued to weigh on sentiment, with Brent crude trading at $68.71 per barrel. Brent had climbed to $70.53 on Monday before settling at $69.21 at the close. Brent crude was down 0.7% from the previous close, trading at $68.71 a barrel. At the same time, West Texas Intermediate (WTI) crude was priced at $66.39 per barrel.
Market players focus on comments from US President Donald Trump, who recently warned that the US would impose 100% secondary tariffs on Russia if a peace deal to end the war in Ukraine is not reached within 50 days.
Meanwhile, Israeli media reported that Prime Minister Benjamin Netanyahu convinced Trump to grant an additional week for a potential ceasefire deal with Hamas. Analysts say oil markets have shown resilience since the start of the year, despite Trump’s trade rhetoric and increased output by OPEC+ countries.
However, with Saudi Arabia ramping up production and global demand showing signs of weakening, experts suggest this resilience may soon be tested. From a technical perspective, Brent crude faces resistance at $75.30 and support at $62.72 per barrel.
Brent Crude closed at US$70.36 per barrel last week, gaining 3.02% from US$68.30 per barrel in the prior week. This brought its year-to-date loss down to 5.73%, compared to 8.49% in the preceding week.
The average trading price stood at US$73.15 per barrel, representing an 8.40% decline relative to the 2024 average of US$79.86 per barrel. Similarly, Bonny Light Crude also closed stronger at US$72.81 per barrel, up 1.38% from US$71.82 in the prior week.
Nigerian grade Bonny Light maintained a premium of US$2.45 per barrel over Brent, although this narrowed from US$3.52 the previous week. So far this year, Bonny Light has recorded a 3.54% YTD loss, with an average trading price of US$74.93 per barrel.
The recovery in crude prices during the week was supported by a combination of geopolitical and macroeconomic factors. Market sentiment improved as ongoing tensions in the Middle East, particularly renewed drone attacks near key oil infrastructure in the Red Sea, reignited supply risk concerns.
In addition, a larger than expected drawdown in U.S. crude inventories, coupled with a weaker U.S. dollar, buoyed investor appetite for commodities. Hopes of policy easing in China to stimulate economic activity also helped stabilize demand outlooks.
These bullish impulses temporarily outweighed concerns over rising non-OPEC supply and mixed global economic signals. #Oil Prices Fall Amidst Trump’s Plan to Sanction Russia Niger Unlocks Access to $41m IMF Loans
