Oil prices were little changed in early Asian trading on Monday following a week of losses, as traders digested the impact of fresh European sanctions on Russian oil exports and closely monitored progress in U.S. trade policy developments ahead of looming tariff deadlines.<\/p>\n
By midday in Beijing, Brent<\/a> crude futures were slightly up at $69.39 per barrel and West Texas Intermediate (WTI<\/a>) crude futures hovered around $67.53 per barrel, reflecting a muted reaction to last week\u2019s developments. This stability follows a nearly 1.5% decline last week, marking the first weekly drop in oil prices this month.<\/p>\n EU Rolls Out New Sanctions Targeting Russian Oil<\/p>\n The European Union on Friday unveiled<\/a> its 18th sanctions package against Russia, intensifying pressure on Moscow as the war in Ukraine drags on. At the heart of this package is a new floating price cap on Russian crude exports, designed to peg Russian oil at 15% below prevailing market prices. The mechanism will enter force on September 3 after a 90-day transition period, aimed at curbing Russian oil revenues while attempting to avoid major disruptions to global oil flows.<\/p>\n Brussels also expanded its blacklist of shipping vessels tied to the so-called Russian \u201cshadow fleet,\u201d sanctioning an additional 105 tankers. These vessels have been instrumental in allowing Russia to circumvent the previous G-7 price cap, which many analysts say<\/a> has not been fully effective in constraining Moscow\u2019s oil export earnings.<\/p>\n \u201cIt\u2019s important to point out that while the EU has lowered the price cap, the G-7 cap remains unchanged. The EU would need to get the U.S. on board to lower the cap,\u201d analysts at ING noted in a briefing.<\/p>\n \u201cThe issue is that the G-7 price cap has not been effective, given that Russia built up a shadow fleet of oil tankers to get around it,\u201d they added.<\/p>\n Market Skepticism and U.S. Policy in Focus<\/p>\n Despite the EU\u2019s aggressive moves, oil markets appear unconvinced that these sanctions will immediately impact global supply or prices. The tepid response in early Monday trade underscores this sentiment.<\/p>\n