Oil Prices Edge Higher As Trump Teases Russia Sanctions, Sends Missiles To Ukraine

Oil prices rose marginally in early trading on Monday as investors remained concerned about potential further sanctions on Russia, which could tighten global supplies.

U.S. President Donald Trump said on Sunday that his administration will send Patriot air defense missiles to Ukraine ahead of his expected major announcement on Russia on Monday.

Benchmark Brent crude prices rose by 0.2% to $70.47 per barrel, while U.S. West Texas Intermediate crude prices gained 3 cents to $68.49 per barrel at 2.42 a.m. GMT. Both contracts had risen by over 2% on Friday due to a probable tougher stance by the Trump administration on Russia.

“He talks nice and then bombs everybody in the evening,” Trump said to reporters about Russian President Vladimir Putin on Sunday. The U.S. President has grown increasingly dissatisfied with Moscow’s reluctance to participate in peace talks mediated by Washington, D.C., and the increasing civilian death toll in Ukraine.

According to a Reuters report, there were also murmurs in the U.S. capital about a bipartisan sanctions bill aimed at forcing Russia to join the negotiations. Trump has not specified the content of his ‘major announcement’ on Russia. The European Union was also considering setting a lower price cap on Russian oil, according to reports.

Retail sentiment about the United States Oil Fund (USO) was still in the ‘extremely bearish’ territory at the time of writing.

However, the risks to supply were also offset by International Energy Agency data, which said that Saudi Arabia exceeded its oil output target for June by 430,000 barrels per day, Reuters reported, citing an ANZ report. However, the kingdom’s energy ministry had stated last week that production from the country complied with OPEC+ targets.

The United States Oil Fund has gained marginally this year, while SPDR S&P 500 ETF (SPY) has risen 5.8%.

Also See: EU Seeks Coordination With Tariff-Hit Nations, Keeps ‘Anti-Coercion’ Tool Shelved As Trump Threatens 30% Duties

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