Oil Prices Fall 2% as OPEC+ Plans Output Increase, Russia Sanctions Impact Limited

Oil prices have fallen about 2% amid investor reassessment of U.S. sanctions targeting Russia's largest oil companies, Lukoil and Rosneft, and a potential OPEC+ decision to boost output. While President Donald Trump's sanctions on Russia initially caused a surge in oil prices, market participants are now debating their actual impact on Russian oil exports, with some analysts suggesting the sanctions may be less severe due to Russia's use of rubles and other allied currencies for transactions. OPEC+, which includes Russia, is leaning toward a modest increase in production in December, contributing to downward pressure on prices. The prospect of a U.S.-China trade deal, with an upcoming meeting between Presidents Trump and Xi Jinping, is providing some optimism, but supply concerns remain central. Additionally, Lukoil's announcement to sell its international assets marks a significant response to the sanctions, while Indian refiners await clarity before making new Russian oil purchases. The International Energy Agency also noted that surplus capacity could limit the sanctions' effect on global oil supply and prices.