12.09.202519:29:11UTC+00WTI Crude Settles Higher Amid Geopolitical Risks

On Friday, West Texas Intermediate (WTI) crude oil futures registered a modest increase of 0.5%, closing at $62.70 per barrel. Initially, the futures had surged by as much as 2.6% due to the prospect of U.S. sanctions targeting Russian crude. These sanctions, however, did not come to fruition, despite rising tensions from continuing Ukrainian drone attacks that posed risks to Moscow’s oil exports. Ukrainian military actions led to a temporary shutdown at Primorsk, Russia’s principal Baltic oil-loading facility, and also targeted three pumping stations responsible for supplying the Ust-Luga hub. In the meantime, the United States indicated a potential push for the G-7 to impose tariffs of up to 100% on Russian oil bought by China and India, as Canada organized a finance ministers’ meeting to explore further strategies. The absence of immediate sanctions prompted traders to offload bullish positions before the weekend. Additionally, the International Energy Agency's projection of a record oil oversupply in the coming year, coupled with OPEC+'s decision to gradually reincorporate idled barrels into the market starting in October, albeit at a reduced pace, added to market pressures.