Oil prices stabilize after US sanctions signal and Chinese economic announcements

The oil market remains stable after a weekly increase, following indications from the USA regarding stricter sanctions against Russian crude oil and China's announcement of plans to strengthen its economy. The Brent crude oil price was quoted above $74 per barrel after rising nearly 5% last week, while West Texas Intermediate (WTI) was around $71. Market analysts speculate that the USA and its allies are considering lowering the existing price cap of $60 per barrel for Russian oil to further restrict financing opportunities for the war in Ukraine, as expressed by US Treasury Secretary Janet Yellen in an interview. Since mid-October, the oil price has been moving within a narrow range due to geopolitical tensions and expectations of an oversupply in the coming year. Chinese regulators announced measures over the weekend to revive the economy of the world's largest oil importer, further enhancing the recent positive momentum. At the same time, a 'maximum pressure' strategy against Iran is threatened by President-elect Trump's designated national security advisor.