Limited price rise
Oil prices rose slightly during the day's trading, with Brent and WTI crude oil rising by almost 0.5%.
This rise comes as traders assess the risks of supply disruptions as a result of the ongoing escalation of attacks on Russian energy infrastructure.
Basic ascent engines
- Attacks on Russian oil facilities
Several Russian oil refineries were hit by Ukrainian attacks last week, raising fears of the possibility of further closures that could narrow the global market and affect oil supply.
- Developments in international sanctions
The EU last Friday proposed the nineteenth sanctions package against Russia, which includes:
* Ban on imports of Russian liquefied natural gas from January 1, 2027.
*Sanctions were imposed on an additional 118 ships.
* Targeting Chinese and foreign companies involved in the purchase of Russian oil.
Gain-curbing factors
- The decline of US sanctions
fears Markets have lowered their expectations for the imposition of US sanctions on countries purchasing Russian oil, especially after President Trump indicated his upcoming meeting with the Chinese President without mentioning the continuation of China's purchases of Russian oil.
- Supply and demand concerns
The rise in prices remained limited due to continuing concerns about the global oil oversupply, and weak global demand amid slowing economic growth.
And also the non-fulfillment of the OPEC agreement of cuts in the market budget.
Future market forecasts
The oil market is currently heading for a period of sharp fluctuations, as the influencing factors conflict between:
- Risks of supply disruptions due to military escalation.
- The growing pressure of international sanctions.
- Concerns the fundamentals of the market in terms of supply and demand.
Thus, traders remain on the lookout for geopolitical shifts and developments in sanctions, which will be the main driver of price trends in the coming period, with the continued influence of fundamental factors as a constraint on large gains in light of the current global economic conditions.
