Oil prices rose on Monday to their highest level in three weeks, as investors anticipated further US sanctions against Russia that could impact global supply, while increased oil imports by China also provided support along with signs of tighter supply.

Brent crude rose 89 cents, or 1.3%, to $71.25 a barrel at 11:14 GMT, while US West Texas Intermediate crude rose 93 cents, or 1.4%, to $69.38.

Increased Chinese crude imports and expectations surrounding US President Donald Trump's announcement on Russia supported prices, said UBS analyst Giovanni Staunovo. "...There remains a perception of market tightness, with most inventories piled up in China and on ships, rather than at key locations," he said.

Russian seaborne oil product exports in June fell 3.4% from May to 8.98 million metric tons, according to data from industry sources and Reuters calculations. Trump said on Sunday that he would send Patriot air defense missiles to Ukraine. He is scheduled to make a "big statement" about Russia on Monday, after expressing frustration with Russian President Vladimir Putin over the lack of progress in ending the war in Ukraine.

A bipartisan US bill imposing sanctions on Russia gained momentum last week in Congress. Meanwhile, European Union envoys are close to agreeing on an 18th package of sanctions against Russia that would include lowering oil price limits.

China's oil imports in June rose 7.4% year-on-year to 12.14 million barrels per day, the highest since August 2023, according to customs data released on Monday. Last week, Brent rose 3%, while WTI recorded a weekly gain of about 2.2%, after the International Energy Agency (IEA) suggested that global oil markets may be tighter than initially expected. Investors are also monitoring the outcome of US tariff negotiations with major trading partners. (alg)

Source: Reuters