West Texas Intermediate (WTI) crude oil prices remain steady around $70.50 per barrel on Monday, supported by tightening supply risks and optimism over China’s economic stimulus efforts. Expectations of further U.S. sanctions on major oil producers Russia and Iran continue to underpin prices, even as the market watches closely for signals of broader demand recovery.
The U.S. is considering additional sanctions targeting “dark fleet” tankers—vessels that clandestinely transport Russian crude—as well as sanctions on Chinese banks that facilitate Russia’s oil revenue, U.S. Treasury Secretary Janet Yellen disclosed on Friday. These measures, aimed at curtailing Moscow’s access to critical funds and supplies, are expected to further restrict global crude flows.
Meanwhile, market optimism has been buoyed by China’s economic stimulus pledges, including plans to raise the fiscal deficit target to spur consumption. With China being the world’s second-largest oil consumer, any stimulus measures could help offset the dampening effect of higher U.S. tariffs on its exports, potentially boosting global crude demand.
Traders are also looking ahead to Wednesday’s Federal Reserve meeting, where a widely anticipated 25 basis point rate cut may ease economic pressures and lend support to commodities like oil. However, geopolitical risks and mixed demand signals are likely to keep WTI’s gains in check, with the market maintaining a cautious outlook.
