Oil prices inched higher on Monday, building on Friday's gains of more than 2 per cent, as markets weighed potential new US and EU sanctions on Russia against increased Saudi output and ongoing uncertainty over US tariffs. Brent crude rose 15 cents to $70.51 a barrel, while West Texas Intermediate (WTI) climbed 14 cents to $68.59. Gains came as US President Donald Trump prepared to make a statement on Russia and pledged more military support for Ukraine, amid bipartisan efforts in Congress to impose further sanctions on Moscow. EU envoys are also close to approving an 18th sanctions package, including a lower price cap on Russian oil. The International Energy Agency (IEA) warned last week that the oil market may be tighter than it appears, supported by strong summer demand. However, price growth was tempered by Saudi Arabia's higher-than-agreed output in June, with production exceeding its OPEC+ quota by 430,000 barrels per day, though Riyadh maintains it is in compliance. Meanwhile, China's oil imports surged 7.4 per cent in June to their highest daily rate since August 2023. Analysts at JP Morgan warned that rising inventories could weigh on prices if they start appearing in key Western markets. Investors remain cautious ahead of further developments in US trade negotiations, which could affect global demand. Attribution: Reuters Subediting: M. S. Salama
