Oil Prices Steady as US Sanctions Hit Russian Exports

Oil prices held steady on Monday as traders balanced concerns over a looming global surplus with disruptions from fresh US sanctions on major Russian producers, which have slowed crude flows to key Asian markets.

Brent crude futures traded around $64 a barrel after a slight decline in the prior session, while West Texas Intermediate hovered below $60. The sanctions, imposed on October 22, targeted Rosneft PJSC and Lukoil PJSC, Russia's largest oil companies, which together account for a significant portion of the country's exports. The measures aim to curb Moscow's revenue streams funding its war in Ukraine by complicating sales to international buyers.

In China, the world's top oil importer, state-owned refiners have paused purchases of Eastern Siberia-Pacific Ocean (ESPO) crude, the primary grade from Russia, following the sanctions. Private refiners, often more willing to handle discounted sensitive cargoes, have also scaled back. Analysts estimate Chinese imports of Russian seaborne crude could fall by 500,000 to 800,000 barrels per day this month, potentially two-thirds below normal levels. Iranian flows, already affected by sanctions on ports like Rizhao, may drop by...