Oil prices slipped in Asian trading early Tuesday as investors weighed geopolitical risks and the possibility of tighter sanctions on Russian energy exports. Brent crude futures for November delivery fell 0.3% to $66.36 per barrel, while West Texas Intermediate (WTI) dropped 0.3% to $62.10. Both benchmarks also ended slightly lower on Monday after Iraq announced higher oil exports under its OPEC+ quota, sparking concerns of oversupply.
Geopolitical tensions remain a major factor. Israeli airstrikes on Gaza intensified, forcing hospital closures and drawing global condemnation. At the United Nations, a coalition of nations pushed for official recognition of a Palestinian state, heightening Middle East uncertainty. The region remains critical, supplying around one-third of global crude oil.
Meanwhile, Ukraine has escalated drone attacks on Russian energy facilities, damaging refineries and disrupting terminal operations earlier this month. These strikes exposed vulnerabilities in Russia’s export infrastructure, raising doubts about whether it can sustain current output levels.
On the sanctions front, the European Union is finalizing a new package targeting Russia’s energy trade. The measures are expected to restrict liquefied natural gas imports and penalize intermediaries in third countries aiding Russian exports. Washington is also urging allies to impose higher tariffs on Chinese and Indian goods due to their continued purchases of Russian crude. If enforced, these steps could disrupt global supply chains and energy flows.
Despite these supply-side risks, demand concerns continue to weigh on oil markets, limiting price gains. Investors remain cautious, balancing the threat of tighter supplies against persistent uncertainty about global economic growth.