Overview

• EU’s 18th sanctions package introduces a floating price cap on Russian crude at 15% below prevailing market levels, effective September 3 after a 90-day transition.
• Brent and WTI futures held near $69 and $67 per barrel as traders registered little immediate market response to the new price cap.
• U.S. tariffs on most European imports are set to begin August 1 unless a trade deal is reached, stoking concerns over demand growth.
• Higher output from OPEC+ and Middle East producers has countered supply risks, although Iran’s upcoming nuclear talks in Istanbul could trigger renewed sanctions.
• The U.S. rig count fell to 422 last week, the lowest since September 2021, underscoring tighter domestic supply conditions.