HOUSTON: Oil prices were flat on Tuesday in a choppy session as traders weighed the impact of Western sanctions on Russian oil flows against an expected supply surplus next year.
Brent crude was down 9 cents, or 0.14percent, at USD64.11 a barrel at 11:27 a.m. EDT (1628 GMT). US West Texas Intermediate (WTI) crude was up 6 cents, or 0.1percent, to USD59.97. Both benchmarks were trading about 1percent lower earlier in the session.
“We are in a tight trading range right now, the market is on hold until we get some inventory numbers,” said Phil Flynn, senior analyst at Price Futures Group.
Investors await US oil stock data from the American Petroleum Institute, due at around 4:30 p.m. EDT. Meanwhile, the US Treasury said sanctions imposed in October on Rosneft and Lukoil are already squeezing Russia’s oil revenue and are expected to curb its export volumes over time.
“Traders weighed the impact of a growing global surplus against US sanctions that are disrupting Russian crude flows,” said MUFG analyst Soojin Kim.
A senior White House official said that US President Donald Trump was willing to sign Russian sanctions legislation as long as he retains final authority over its implementation.
Trump said on Sunday that Republicans were drafting a bill to impose sanctions on any country doing business with Russia, adding that Iran could also be included.
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