[International Oil Prices] Fall After One Day of Rebound... Market Says "Hmm" to EU's Sanctions on Russia
- Input
- 2025-07-19 05:00:03
- Updated
- 2025-07-19 05:00:03
International oil prices closed lower on the 18th (local time).
The oil price, which had rebounded by about 1.5% the previous day due to news that Iraqi oil fields had been under drone attack for four consecutive days, turned weak again in just one day.
The European Union (EU) launched additional sanctions targeting Russian oil exports, but the market reaction was reserved.
The EU adopted the 18th sanction package against Russia, which started the war in Ukraine, on this day.
The price cap on Russian oil, fixed at $60 per barrel, was changed to automatically decrease to 15% lower than the average price of the previous three months at regular intervals.
Under the new method, if Russian oil is imported from abroad, the maximum price will drop to $47.60 per barrel, 15% lower than the average of the previous three months, instead of $60 per barrel. The decision on whether to lower the export price cap is made every six months.
The EU also decided to completely ban the import of refined oil produced from Russian oil. Large refining facilities in India that import oil from Russia, refine it, and then export it to Europe were also included in the embargo.
However, the market did not react significantly.
The expectation that the EU's sanctions on Russia would not have a significant impact was influenced by the fact that Donald Trump, the U.S. President, who had turned to a hardline stance against Russia, was unexpectedly lukewarm about the sanctions.
Amid this judgment, international oil prices fell.
Brent crude, the benchmark for international oil prices, closed at $69.28 per barrel for September delivery, down $0.24 (0.35%) from the previous session.
West Texas Intermediate (WTI), the benchmark for U.S. oil prices, closed at $67.34 per barrel for the August contract, down $0.20 (0.30%).
Both Brent and WTI fell on a weekly basis.
Over the past week, Brent fell by 1.54%, and WTI fell by 1.62%.
dympna@fnnews.com Song Kyung-jae Reporter