Oil prices edged higher on Monday, extending gains from Friday as traders monitored potential new U.S. sanctions on Russia that could tighten global supply. However, rising Saudi output and uncertainty over tariffs capped further gains.
Brent crude rose by 0.7%, to $70.86 per barrel, while U.S. WTI added 0.73% to $68.95. Both benchmarks gained over 2% on Friday.
President Donald Trump is expected to make a key statement on Russia after announcing plans to send Patriot missiles to Ukraine. He has grown increasingly frustrated with Russia's continued attacks on Ukrainian cities. A bipartisan U.S. sanctions bill is gaining traction but still awaits Trump’s backing.
Meanwhile, the EU is close to approving an 18th sanctions package against Moscow, including a lower oil price cap.
Still, prices were pressured by data showing Saudi Arabia exceeded its OPEC+ output quota in June. The kingdom said its marketed crude supply remained within voluntary limits, though the IEA reported output at 9.8 million bpd - above the 9.37 million target.
China's oil imports rose 7.4% in June, hitting their highest daily rate since August 2023. Analysts expect continued stockpiling, which may soon weigh on prices as inventories reach Western markets.
Markets are also watching U.S. trade negotiations that could impact global economic growth and oil demand.
OPEC expects robust oil demand in Q3 and a tight supply-demand balance later in the year, according to Secretary General Haitham Al Ghais. He noted global demand could rise by 1.3 million bpd in 2025 amid solid economic growth. Despite cutting near-term forecasts due to slower Chinese growth, OPEC raised its long-term outlook, projecting global demand to reach 111.6 million bpd by 2029.