Oil prices fell in Asian trading on Monday after recording monthly losses for August, as investors discounted the risk of immediate supply disruptions from potential secondary sanctions on Russian crude and focused on fresh Chinese factory data for demand signals.
As of 23:01 ET (03:01 GMT), Brent Oil Futures expiring in October fell 0.4% to $67.21 per barrel, while West Texas Intermediate (WTI) crude futures also declined 0.4% to $63.78 per barrel.
Both contracts dropped more than 7% in August, dragged by supply glut fears from steady OPEC+ production hikes.
Markets shrug off Russian supply secondary sanction fears
Russia-Ukraine peace hopes have dimmed after U.S. President Donald Trump last month urged Ukrainian President Volodymyr Zelenskyy and Russian President Vladimir Putin to hold direct talks before considering a trilateral summit hosted by Washington.
Despite this, supply disruption fears from possible sanctions on Russian oil buyers have eased.
"Oil prices settled lower last week despite growing European calls for secondary sanctions on buyers of Russian oil and gas.The mild reaction may suggest the market is becoming increasingly numb towards sanction risks," ING analysts said in a note.
"And that to be effective, sanctions would likely need US backing. Up until now, the US has only imposed secondary tariffs on India for its purchases of Russian oil, not other key players like China," they added.
In a move tied to India's aggression in buying Russian crude, an additional 25% U.S. tariff on Indian imports took effect last week, doubling the total duty to 50% starting August 27.
Investors gauge demand outlook; Chinese PMI in focus
Traders also assessed seasonal factors, with U.S. fuel demand expected to soften as the summer driving season ends.
Rising OPEC+ output in the coming months is likely to add further supply, raising concerns that inventories could build if economic growth stays subdued.
The demand outlook remained uncertain after mixed economic readings from China.
The official manufacturing purchasing managers' index (PMI) contracted again in August, while a private RatigDog survey showed that factory activity rebounded at the fastest pace in five months.
Source: Investing.com
Oil prices stabilized on Thursday (February 12th), as the market reassigned a risk premium to US-Iran tensions despite US inventory data showing swelling domestic supplies. This movement confirms one ...
Oil prices rose on Wednesday (February 11th), supported by a combination of geopolitical risk premiums from US-Iran tensions and more solid Asian demand signals particularly from India which helped ea...
Oil remained in the green zone on Tuesday (February 10th), as the market refused to abandon the Middle East risk premium. As of 13:07 GMT (20:07 WIB), Brent rose +0.4% to $69.32/barrel, while WTI rose...
Oil prices fell about 1% on Monday as concerns about conflict in the Middle East eased slightly. The market calmed after the US and Iran agreed to resume talks on Tehran's nuclear program, reducing fe...
Oil prices moved slightly higher in a volatile session on Friday, as investors assessed the direction of nuclear negotiations between the United States and Iran. Price movements appeared sensitive to ...
Oil prices stabilized on Thursday (February 12th), as the market reassigned a risk premium to US-Iran tensions despite US inventory data showing swelling domestic supplies. This movement confirms one thing: geopolitical headlines are still more...
Gold prices weakened slightly on Thursday (February 12th), as more solid US employment data reduced market confidence in an imminent Federal Reserve interest rate cut. The strong employment data prompted market participants to shift expectations of...
The Hang Seng Index reversed its downward trend in Hong Kong on Thursday (February 12th), weakening by around 0.9% to around 27,000 after a strong session earlier. This decline halted the momentum of the short term rally, as investors began to...