Oil Ekes Out Gains As Russia Dominates Analytical Concerns

Analysts cite Iran and Venezuela as possible influencers amid simmering geopolitical tensions: File Image/Pixabay

The U.S. sanctions against Russia proved their resilience as a primary concern for crude traders on Tuesday, with oil prices rising about 1 percent after analysts further weighed their impact on world trade.

Also supporting oil was U.S. president Donald Trump stating that Washington was interviewing for a new chair of the  Federal Reserve and that “some great names” were being considered.

Brent settled up 69 cents, or 1.07 percent, at $64.89 per barrel; West Texas Intermediate settled up 83 cents, or 1.39 percent, to $60.74.

Russia's influence on Tuesday’s oil trading was with regards to an earlier statement from the U.S. Treasury’s Office of Foreign Assets Control that analysis of the initial market impact of the sanctions announced on October 22 "are having their intended effect of dampening Russian revenues by lowering the price of Russian oil and therefore the country's ability to fund its war effort against Ukraine."

Balancing that was the revival of operations at Russia's Novorossiysk port, previously offline due to a Ukrainian drone strike: this capped Tuesday’s gains, “as reports indicate that loadings have resumed sooner than expected at Novorossiysk," stated Tony Sycamore, analyst at IG, in a note.

Although Goldman Sachs reiterated its prediction that oil prices will decline through 2026 due to a perceived global overabundance of the commodity, the bank admitted that Brent could rise above $70 a barrel in 2026/2027 if Russian output falls more sharply.

As for near-future prospects in the trading world, Bloomberg noted that simmering geopolitical risks could put a floor on oil prices, “including attacks in Sudan that have crimped exports, and Iran’s seizure of an oil tanker last week near the vital Strait of Hormuz; the market in also weighing the potential fallout from U.S. pressure on Venezuela.”