Oil Prices Dip Amid U.S. Sanctions, Set for Largest Weekly Gain Since June

Oil prices slightly declined in early trading on Friday after a sharp surge the previous day but remained poised for their largest weekly gain since mid-June, around 7%, driven by new U.S. sanctions on Russia's top oil producers Rosneft and Lukoil. These sanctions, aimed at pressuring Russia over the Ukraine conflict, have led Chinese state-owned firms to suspend Russian crude purchases temporarily and prompted Indian refiners to reduce imports, raising global supply concerns. Despite the dip, market analysts suggest the situation remains fluid, with investors adopting a wait-and-watch stance regarding potential geopolitical developments. Kuwait's oil minister indicated that OPEC is prepared to offset any supply shortages by reversing previous production cuts to stabilize the market. Russian President Vladimir Putin dismissed the sanctions as largely symbolic, emphasizing Russia's critical role in the global energy market. Additional sanctions from the UK and the European Union, including bans on Russian LNG and targeting Chinese refiners linked to the trade, further complicate the energy landscape ahead of an anticipated meeting between Presidents Donald Trump and Xi Jinping.