WTI Crude Oil Holds at $66 as US Tariff Uncertainty Offsets EU Russia Sanctions

WTI Crude Oil Stalls at $66 Despite EU Sanctions on Russian Energy

Oil Prices Lack Direction Amid Geopolitical Headwinds

West Texas Intermediate (WTI) futures continue to hover around $66.00 per barrel in Monday’s European session, with markets digesting the impact of EU sanctions on Russian energy exports and ongoing US trade tensions.

EU Sanctions Russia, Imposes New Price Cap

The European Union (EU) recently endorsed fresh sanctions on Russia, including a price cap on Russian crude oil exports set at approximately $47.60 per barrel, around 15% lower than the current average market price, as reported by the Times of India. While these sanctions are intended to restrict Russia’s energy revenues, the anticipated supply squeeze has not yet translated into higher oil prices.

Technical Note: A decrease in Russian crude supply due to sanctions should typically support oil prices. However, broader macroeconomic concerns are keeping bulls at bay.

US Tariff Uncertainty Weighs on Oil Markets

The upside in oil prices remains capped amid skepticism over US trade negotiations with key global partners. With the August 1 tariff deadline approaching, investors remain cautious.

US President Donald Trump has threatened to increase the baseline tariff rate on EU imports from 10% to as high as 20%, and has not relented on maintaining the controversial 25% car tax.

Global Trade Relations in Focus

The US has concluded limited trade agreements with Vietnam, Indonesia, UK, and China.
Ongoing negotiations with India are said to be progressing.
However, Washington’s broad tariff regime still affects 22 nations, including Canada, Japan, Mexico, and the EU.

These complex and often confrontational trade dynamics are adding a layer of uncertainty to energy markets.

Outlook for Crude Oil

Despite geopolitical catalysts, WTI remains technically rangebound around $66.00. Until clearer supply shocks or resolution of trade policies materialize, oil prices may continue to consolidate.