After Last Week's Gains.. Stability in Oil Prices

SadaNews - Oil prices stabilized after gains recorded last week, amid market monitoring of tightened restrictions on Russian exports, against indications of a projected surplus in supply in the coming period.

Brent crude traded near $67 a barrel after a 2.3% increase last week, while West Texas Intermediate remained steady at $63. U.S. President Donald Trump renewed his call for European countries to stop purchasing Russian oil, emphasizing his readiness to proceed with imposing "major sanctions" on oil supplies from an OPEC+ member state if NATO countries commit to the same step.

Despite most European countries reducing or completely ceasing their imports of Russian crude, some NATO countries like Turkey and Hungary continue to buy oil from Moscow. Trump is increasing pressure on the alliance as the United States prepares to urge its G7 partners to impose tariffs that could reach 100% on purchases of Russian oil by China and India.

Traders are also monitoring developments in the Middle East following an Israeli raid on Qatar last week, in addition to Ukrainian attacks targeting refineries and ports in Russia. Over the weekend, drones targeted the "Kinef" facility of the "Surgutneftegas" company, one of the largest in Russia with an annual production capacity exceeding 20 million tons.

Vandana Hari, founder of the Singapore-based market analysis firm Vanda Insights, stated: "The stalemate in the Ukrainian war is currently the main driver for the market, with the immediate risk being additional sanctions and attacks that could affect the infrastructure for exporting Russian oil."

Oil has moved within a range of no more than $5 a barrel for over a month, amid a fragile balance between geopolitical risks and weak fundamental factors, prompting hedge funds to reduce their long positions in U.S. crude to the lowest recorded level.

OPEC+ has begun to reduce new production cuts ahead of schedule, leading the International Energy Agency to predict a record surplus in supply next year.