Oil Prices Surge Again: Possible New U.S. Sanctions on Russia and Their Impact on Global Markets
After a week of fluctuating market dynamics, global oil prices have again shown an upward trend, sparking concern among market participants and analysts alike.
The primary driver of this increase is the emergence of geopolitical risks, particularly the potential imposition of new U.S.
sanctions against the Russian Federation.
Traders around the world are not ruling out additional restrictions that could prove costly for the Kremlin in financial terms, leading them to include a risk premium in current prices.As of Friday morning, the price for the benchmark Brent crude stands at $67.55 per barrel, while WTI is at $63.42.
Over the past week, both contracts have experienced growth, with Brent increasing by approximately 2.7%, and WTI by 1.1%, according to Reuters.
This price movement is driven not only by political uncertainties but also by internal economic factors.
Traders have already shifted away from the scenario of a quick end to the Russia-Ukraine conflict mediated by U.S.
leader Donald Trump.
Analysts from ING point out that the organization of the Putin-Zelensky summit faces difficulties due to unresolved security guarantees for Ukraine, thereby heightening the risks for the global oil market.Additional support for the rising prices comes from a larger-than-expected drawdown in U.S.
oil inventories, which decreased more significantly than forecasted.
This development has attracted investor attention, especially ahead of the Jackson Hole symposium and the speech by Fed Chair Jerome Powell, where signals about possible interest rate cuts in September could be announced.
Such moves are expected to stimulate economic activity and boost oil demand.
The overall situation creates a complex background for oil prices, which are likely to remain sensitive to geopolitical developments and macroeconomic signals in the near future.