Oil prices little changed; markets await Trump move on Russian export curbs

By Florence Tan

SINGAPORE (Reuters) – Oil prices recovered on Monday as supply concerns persisted after Washington imposed two rounds of sanctions in the past two weeks on Russia’s energy sector over the Ukraine war.

Brent crude futures climbed 34 cents, or 0.4%, to $81.13 a barrel by 0042 GMT after closing down 0.62% in the previous session.

U.S. West Texas Intermediate crude, which expires on Tuesday, was at $78.47 a barrel, up 59 cents, or 0.8%, after settling down 1.02% on Friday. The more active April contract rose 36 cents to $77.75 a barrel.

Both contracts gained more than 1% last week in their fourth successive weekly ascent, after the Biden administration sanctioned more than 100 tankers and two Russian oil producers. That led to a scramble by top buyers China and India for prompt oil cargoes and a global rush for ship supply as dealers of Russian and Iranian oil seek unsanctioned tankers to ferry their load.

The new sanctions are seen curtailing supply, at least in the near term, analyst Tim Evans said in newsletter Evans on Energy.

“Higher tanker rates on unencumbered vessels and a widening backwardation in crude oil calendar spreads have been among the notable ripple effects, reinforcing the concern over supplies,” he said.

Backwardation refers to a market structure where prompt prices are higher than those in future months, indicating tight supply.

The prompt Brent monthly spread widened in backwardation by 2 cents to $1.24 a barrel on Monday while the WTI spread was at 66 cents a barrel, up 17 cents.

Easing tension in the Middle East capped oil’s gains.

Hamas and Israel exchanged hostages and prisoners on Sunday that marked the first day of a ceasefire after 15 months of war.

This post is originally published on INVESTING.

  • Related Posts

    Oil falls after Trump reverses Colombia sanctions threat

    By Anna Hirtenstein LONDON (Reuters) -Oil prices wavered on Monday after the U.S. and Colombia reached a deal on deportations, reducing immediate concern over oil supply disruptions but keeping traders…

    Dollar gains on tariffs fears; euro looks to ECB meeting

    Investing.com – The US dollar slipped lower Monday, rebounding after recent losses as attention returned to the potential for trade tariffs from the Trump administration at the start of a…

    Leave a Reply

    Your email address will not be published. Required fields are marked *

    You Missed

    You Want to Trade at 3AM? Schwab Opens Round-the-Clock Trading Access for All Clients

    • February 13, 2025
    You Want to Trade at 3AM? Schwab Opens Round-the-Clock Trading Access for All Clients

    Webull Dares to Enter Prediction Markets Where Robinhood Failed

    • February 13, 2025
    Webull Dares to Enter Prediction Markets Where Robinhood Failed

    Short-Term Analysis for BTCUSD, XRPUSD, and ETHUSD for 13.02.2025

    • February 13, 2025
    Short-Term Analysis for BTCUSD, XRPUSD, and ETHUSD for 13.02.2025

    Euro Surges as Trump Fuels Optimism. Forecast as of 13.02.2025

    • February 13, 2025
    Euro Surges as Trump Fuels Optimism. Forecast as of 13.02.2025

    Short-Term Analysis for Oil, Gold, and EURUSD for 13.02.2025

    • February 13, 2025
    Short-Term Analysis for Oil, Gold, and EURUSD for 13.02.2025

    Robinhood’s Crypto Revenue Surpasses Options in Q4 2024

    • February 13, 2025
    Robinhood’s Crypto Revenue Surpasses Options in Q4 2024