Oil Prices Rise on G7 Plans to Pressure Russia Amid Oversupply Concerns

Oil prices experienced a modest rebound after falling for three consecutive sessions, driven by expectations of tighter sanctions on Russian crude oil. The Group of Seven (G7) finance ministers announced measures to increase pressure on entities purchasing or facilitating Russian oil imports, while the U.S. plans to provide Ukraine with intelligence to support missile strikes on Russian energy infrastructure, aiming to disrupt Kremlin oil revenues. Despite this geopolitical tension supporting prices, concerns about oversupply persisted due to anticipated increases in OPEC+ production and a U.S. government shutdown raising economic uncertainty. Additionally, China's stockpiling demand helped limit price declines, even as U.S. crude inventories rose unexpectedly, indicating softer fuel demand. Brent crude futures rose approximately 20 to 37 cents to around $65.55 to $65.72 per barrel, and U.S. West Texas Intermediate crude increased by roughly 20 to 34 cents to near $61.98 to $62.12 per barrel. Overall, the oil market remains influenced by the balance between sanction-driven supply risks and concerns over global economic growth and production increases.