Oil Edges Down With Trade Talks, EU Curbs On Russia In Focus

Oil nudged lower following its first weekly drop this month, with traders focused on US trade talks and the European Union’s efforts to curb Russian energy exports. 

Brent crude traded near $69 a barrel after falling 1.5% last week. EU envoys are set to meet as early as this week to formulate a plan to respond to a possible no-deal scenario with US President Donald Trump, whose position is seen to have stiffened ahead of an Aug. 1 deadline.

Late last week, the 27-nation bloc agreed on a package of sanctions against Moscow, including a lower price cap on the country’s crude, curbs on fuels made from Russian petroleum and a ban on a large refinery in India. The UK joined the EU efforts.  

Beijing — with two Chinese banks and other companies included in the sanctions — protested the EU measures and said it will take the necessary steps to resolutely “safeguard the legitimate rights and interests of Chinese firms and financial institutions.”

China and India became the main buyers of Russian crude when global flows were reshaped following the Kremlin’s 2022 invasion of Ukraine. The shipments have so far not been impeded by western restrictions. 

Oil has trended higher since early May, but Brent is still down about 7% this year as Trump ratchets up his trade war and OPEC+ relaxes supply curbs. Prices have been jolted by developments in the Middle East, as well as sanctions on crude from producers including Russia and Iran. 

Diesel’s price relative to crude in Europe, a gauge for profitability of producing the fuel, was near the highest since March 2024, while its prompt time spread — the difference between its closest two contracts — also rallied on Friday, widening its bullish backwardation structure. 

• Brent for September settlement slid 0.6% to $68.84 a barrel at 10:35 a.m. in London.

• WTI for August delivery, which expires Tuesday, lost 0.6%% to $66.94 a barrel.

• The more active September contract was down 0.5%% to $65.69 a barrel