September 22, 2025
EU imposition of new sanctions on Russia and rising tensions over Moscow’s alleged violations of Baltic airspace have led to increase in the prices of Crude Oil in the global commodity market on Monday.
These occurrence have heightened supply risk amidst positive expectation about demand after U.S Fed rate cut and weak dollar.
Brent crude rose by 0.84% and traded at $66.68 per barrel, as against the previous close of $66.12.
US benchmark West Texas Intermediate (WTI) increased from $62.32 in the prior session by 0.88% to $62.87.
Prices rose after the European Commission proposed the 19th sanctions package against Russia, targeting Russian LNG, oil revenues, shadow fleet vessels, banks, crypto, and export of military-use goods.
EU Commissioner Valdis Dombrovskis said during the Eurogroup press conference in Copenhagen, that, “The Commission’s proposal for the 19th sanctions package will aim to weaken Russia’s already weakened war economy further,”
READ MORE; U.S Inflation Concern, OPEC+ Output Surges Trigger Drop In Oil Prices
He stated that no one has implemented stronger sanctions than Europe, with emphasis that the sanctions are effective, particularly as part of a coordinated G7 approach.
Dombrovskis, said that G7 sanctions have already inflicted real costs on the Russian economy, to the tune of hundreds of billions.
“But it is clear that we must step up the pressure against Russia further to make its war of aggression unsustainable,”
adding that the details will be disclosed “very soon.”
Prices also firmed after Russia allegedly violated Baltic airspace and US President Donald Trump pledged to defend Poland and the Baltic states if Moscow escalates further.
“Yeah, I would,” Trump said when asked whether he would help defend Poland and Baltic countries from Russia if Moscow keeps escalating. This came before he departed for a memorial service of assassinated conservative political commentator Charlie Kirk in Glendale, Arizona.
READ MORE; Oil Prices Continue To Rise Amidst Red Sea Vessel Attack.
On Friday, three suspected Russian MiG-31 fighter jets entered Estonian airspace over the Gulf of Finland without permission for 12 minutes.
Meanwhile, optimism that the Fed will continue cutting interest rates and positive signals from Trump’s recent meeting with Chinese President Xi Jinping were tempered by a new US measure requiring companies to pay a $100,000 annual fee for H-1B work visas, a move that analysts say is weighing on global risk appetite.
Investors are closely tracking the Fed’s policy path, with markets pricing in 44 basis points of rate cuts over the two remaining meetings this year.
However, analysts say lower interest rates can boost economic growth and oil demand helping consumers reduce borrowing costs.
