West Texas Intermediate (WTI), futures on NYMEX, trades flat around $66.00 during the European trading session on Monday. The Oil price struggles for direction while the European Union (EU) has imposed sanctions on energy exports from Russia, following its three-year long war with Ukraine.
According to the EU sanctions imposed on Russia, the new price cap on Oil exports from Moscow will be around $47.60 per barrel, 15% below the current average traded price, as per report from the Times of India (TOI).
Technically, the impact should be positive on Oil price as sanctions on energy exports from Ruess should limit the flow of crude.
However, uncertainty surrounding trade negotiations between the United States (US) and its trading partners ahead of the August 1 deadline has limited the upside in the Oil price.
So far, the US has announced trade deals with the United Kingdom (UK), Vietnam, and Indonesia, and a limited pact with China. Washington has also expressed confidence that it is close to signing a trade agreement with India. The nation has imposed tariffs on 22 nations, notably Japan, Vietnam, Canada, Mexico, and the European Union (EU)
Meanwhile, trade tensions between the US and the EU have increased as President Donald Trump has been reluctant to reduce 25% automobile levy and is emphasizing to increase the baseline tariff rate from 10% to 15%-20%, according to a report from the Financial Times (FT).
