BAKU, July 21 — Global oil prices inched higher on Sunday morning, recovering slightly after last week’s decline, as traders continued to weigh the potential impact of fresh European Union sanctions against Russia.
As of early trading on July 21, September futures for Brent crude rose by 0.1% to $69.35 per barrel, while WTI (West Texas Intermediate) futures were up 0.17% at $66.16 per barrel, according to trading data.
Last week, Brent lost approximately 1.5%, while WTI fell by 3.5%, pressured by concerns over slowing global demand and rising supply from non-OPEC producers.
Meanwhile, Azerbaijan’s benchmark crude, Azeri Light, was trading at approximately $71.10 per barrel, slightly lower than its recent highs but still well above the new EU-imposed cap on Russian oil.
Sanctions Pressure Mounts
The modest price uptick follows the EU Council’s adoption of an 18th sanctions package against Russia on July 18. Among the most impactful measures is the introduction of an automatic adjustment mechanism for the oil price cap, aimed at tightening enforcement and curbing Russian revenue from fossil fuels.
The EU also lowered the maximum price allowed for Russian oil exports under the cap from $60 to $47.60 per barrel — a 20% drop that could further squeeze Moscow’s energy earnings.
Another provision of the new sanctions includes a ban on imports of oil products from third countries if they were refined using Russian crude, even if not explicitly labeled as such. This move is expected to disrupt so-called “laundering” of Russian oil through intermediary countries.
Market Outlook
Traders and analysts say the true impact of the updated sanctions may take several weeks to materialize, but the direction is clear: tightening restrictions and greater scrutiny of oil flows are likely to create volatility in global energy markets.
At the same time, the resilience of non-Russian suppliers like Azerbaijan may strengthen their position. With Azeri Light remaining above $71, Baku continues to benefit from market premiums for non-sanctioned, low-sulfur crude, especially in the European and Mediterranean markets.
