Oil Rises Near $71 as Trump Warns Russia of Secondary Sanctions
The prices of crude oil increased on Tuesday amidst supply-side uncertainties and weak global economic performance expectations, while fresh sanctions against Russian exports loom. The IMF estimates the global economy will only grow by 3% while a number of ratings agencies have build bearish estimates for 2025.
Brent crude oil futures rose more than 1% toward $71 per barrel on Tuesday, extending a 2.4% gain in the previous session driven by stronger-than-expected US economic data and growing concerns over global supply risks.
WTI crude oil futures rose more than 1% to $67.5 per barrel on Tuesday, extending a 2.4% gain in the previous session driven by stronger-than-expected US economic data and growing concerns over global supply risks.
President Trump warned Russia of “secondary sanctions” if it doesn’t agree to a Ukraine ceasefire within 10–12 days, with the Kremlin signaling no change in stance.
The warning follows fresh EU sanctions on Russia, which also impacted India’s Nayara Energy, forcing it to cut refinery output. On the macro front, US consumer confidence beat expectations, supporting optimism around demand.
Attention now turns to the Aug. 1 trade deal deadline and the upcoming OPEC+ meeting that will decide September output levels.
Oil is on track for a third straight monthly gain, supported by strong summer demand and tight inventories in key regions. However, a potential supply glut later in the year looms as OPEC+ continues raising production.
Elsewhere, UK natural gas futures climbed toward 83 pence per therm, rebounding from a three-week low of 78 on July 24, after a drop in Norwegian flows due to maintenance at the Troll field and a delay in restarting Hammerfest LNG in Norway tightened supply.
Warmer weather across Northwest Europe is also expected to boost demand. Meanwhile, President Trump’s shortened deadline for Russia to agree to a Ukraine ceasefire raised fears of fresh sanctions on Russian energy exports, threatening global LNG flows.
For the UK, these risks are compounded by limited storage. Centrica may extract rather than store gas from Rough—the UK’s largest site—which remains empty and could close by 2025 without state support.
With only 12 days’ worth of winter gas in storage, far below EU levels, and North Sea output falling, the UK remains highly dependent on imports from Norway, Europe, and global LNG markets. A £2 billion upgrade to Rough is being considered, but market conditions remain difficult. #Oil Rises Near $71 as Trump Warns Russia of Secondary Sanctions GCR Upgrades LAPO Microfinance Bank Rating Outlook
