Brent crude oil futures declined to approximately $80.4 per barrel on Tuesday, as traders engaged in profit-taking following a three-day rally.
Brent snaps three-day gains
On Monday, crude prices reached a five-month high, driven by stricter U.S. sanctions on Russia's energy sector, which raised concerns about global supply disruptions. The sanctions targeted major Russian producers and hundreds of vessels and tankers, prompting key importers such as India and China to explore alternative sources. Signs of disruption are already emerging, with a senior Indian official announcing that sanctioned vessels would be barred from unloading cargo, while China has been securing oil from the UAE and Oman to offset supply risks.
European nations urged the EU to lower price cap on Russian oil
Meanwhile, six European nations urged the EU on Monday to lower its $60 per barrel price cap on Russian oil to further restrict Russia’s ability to fund its war in Ukraine. However, concerns over weaker demand from China could offset the effects of tighter supply. Recent data revealed that China’s crude oil imports in 2024 declined for the first time in two decades—excluding the pandemic period—indicating a slowdown in the world's largest oil importer.
