Crude oil prices remained elevated near 108 dollars per barrel as geopolitical tensions continued to unsettle global markets. US President Donald Trump's
Russia sanctions waiver and ongoing Ukrainian attacks have added to uncertainty over global energy supplies. Meanwhile, tensions between the US and Iran and reported attacks on Saudi infrastructure have added to concerns about potential supply disruptions. While traders weighed possibly higher Russian supplies hitting the market after US sanctions' relief, Ukraine bombing of oil facilities in Russia and more tankers coming under attack in the Persian Gulf clouded the supply outlook. Fire broke out at an oil terminal and depot in St. Petersburg after Ukraine launched a massive wave of drone strikes on Sunday as per reports. Experts believe the strikes came as tensions between Ukraine and US deepened, with US President Donald Trump criticising Ukraine's attacks on Russian oil infrastructure. Global oil expert and CEO-Australia, Trading.com & Chief Strategist Asia-Pacific XM.com, Peter McGuire told Times Now Digital, "US President Donald Trump has decided to waive Russia sanctions under the Graham Act as tensions build with Ukrainian attacks and Brent Crude prices trading near 108 dollars per barrel. Markets remain skittish due to numerous factors including US-Iran, Russia-Ukraine and attacks on Saudi infrastructure. As for the Graham Act, it's positive for the US economy. As for voter backlash we will have to wait and see how it impacts the midterm election." Going forward, analysts will need to assess whether the sanctions waiver translates into a meaningful increase in Russian oil supplies and whether Ukrainian attacks disrupt production, refining or exports. Developments involving Iran, the security of shipping routes in the Persian Gulf and any further attacks on Saudi energy infrastructure will also be critical. The direction of crude prices will depend on how these competing supply risks evolve. If additional supply reaches the market without major disruptions, prices could ease; sustained disruptions, however, could keep crude elevated.
