Oil fell as global trade tensions deepened and Russian supply risks eased

Crude oil futures fell on Monday as escalating global trade tensions and uncertainty over new US sanctions on Russian oil buyers undermined early gains driven by geopolitical risk.

Brent crude futures slipped $1.15, or 1.63%, to settle at $69.21 a barrel.

WTI crude dropped $1.47, or 2.15%, to close at $66.98 a barrel.

Prices initially rallied in early trading on expectations that Washington would ramp up sanctions enforcement against countries still importing Russian crude. “However, secondary sanctions are notoriously difficult to enforce,” noted one market analyst. “Investors are sceptical about Washington’s willingness—and ability—to apply sweeping measures.”

Adding to the bearish tone, the US reignited trade war fears over the weekend by threatening to slap 30% tariffs on goods from the European Union and Mexico. The move has cast fresh doubts over global economic growth and, in turn, the demand outlook for energy.

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