On Tuesday, oil prices recorded a decrease of approximately 2%, marking the third consecutive day of decline. Futures contracts for Brent crude fell by 2.1% to $64.26 per barrel, while those for West Texas Intermediate (WTI) dropped by 2% to $60.02. This decline comes in the wake of sanctions imposed by the U.S. against Russian companies Lukoil and Rosneft, as well as a waiver granted to Germany, which alleviated fears of a sudden reduction in supply. Analyst Phil Flynn emphasized that the flexibility of the sanctions has diminished supply concerns.
Additionally, the director of the International Energy Agency mentioned that the effect of the sanctions will be limited due to existing excess capacity. Refineries in India have suspended orders for Russian oil, and OPEC+ is considering a modest increase in production to offset potential losses from Russia. Global oil demand remains strong, including from China, according to statements from the CEO of Saudi Aramco. Investors are also paying attention to developments in trade negotiations between the U.S. and China.