Oil Prices Fall amid Russia Sanctions and OPEC+ Output Plans

Oil prices have fallen for a third consecutive day due to investor uncertainty over the impact of U.S. sanctions on Russia's two largest oil companies, Lukoil and Rosneft, coupled with indications that OPEC+ may increase oil production in December. Brent crude and U.S. West Texas Intermediate prices dropped around 1.7% to 2%, reversing gains recorded the previous week following President Donald Trump's sanctions linked to the Ukraine conflict. Market skepticism remains about the severity of the sanctions' effects on Russian oil exports, with some analysts noting a reduction in the supply risk premium. The International Energy Agency has highlighted that the sanctions' influence will be limited because of existing surplus production capacity. Lukoil's announcement to sell its international assets marks a significant response to Western sanctions. Additionally, Indian refiners are holding off on new Russian oil orders pending clearer guidance, while OPEC+ signals a modest output increase, suggesting ongoing volatility in the oil market.