Brent crude and U.S. West Texas Intermediate futures moved lower as markets assessed whether sanctions relief could keep additional Russian oil flowing into global markets.
The potential waiver has introduced fresh uncertainty for traders, who are weighing the impact of continued Russian exports against efforts to restrict Moscow’s energy revenue.
At the same time, escalating tensions in the Middle East remain a significant source of support for prices. Any disruption to production or shipping routes could quickly tighten supplies and reverse the decline.
Market participants are also monitoring global demand, particularly signs of economic weakness in major consuming countries. Slower growth could limit fuel consumption and offset supply concerns.
The competing pressures have kept oil markets volatile, with traders focused on government decisions, regional developments and upcoming inventory data for clues about the next direction.