WTI Crude Rebounds Above $66 on Speculation of US Sanctions Against Russia

WTI Rises Above $66 as Markets Brace for Possible US Sanctions on Russia

Published: July 11, 2025
Category: Commodities | Oil | Geopolitics

Geopolitical Risks Fuel Oil Rally

West Texas Intermediate (WTI) crude oil prices are trading higher on Friday, rebounding from earlier losses and climbing above the $66.00 per barrel mark during Asian trading hours. The renewed buying momentum is largely driven by geopolitical risk as investors brace for a potential announcement by US President Donald Trump concerning new sanctions on Russia.

Trump Signals Action Against Russia

President Trump hinted at an imminent announcement related to Russia, fueling market speculation about additional sanctions against one of the world’s largest oil producers. According to Reuters, the decision stems from frustrations with Russia’s continued military actions in Ukraine, including the escalation of shelling in urban areas.

Any new sanctions targeting Russian energy exports could tighten global supply and bolster oil prices further in the near term.

Saudi Oil Exports to China Boost Demand Outlook

Meanwhile, market sentiment is also being supported by increased demand signals, as Saudi Arabia is expected to ship approximately 51 million barrels of oil to China in August — the largest volume in over two years. This reinforces optimism about Chinese crude consumption, at least in the short term.

OPEC Issues Long-Term Demand Warning

Despite the near-term demand boost, OPEC’s 2025 World Oil Outlook, released Thursday, revised down its global oil demand forecast for 2026–2029. The group cited expectations of weaker Chinese consumption as a key factor for the long-term downgrade.