Crude oil rises to 3-week high as investors eye Trump statement on Russia

Oil prices rose on Monday and reached their highest level in three weeks, as investors eyed further U.S. sanctions on Russia that may affect global supplies, while higher oil imports by China also offered support.

Brent crude futures rose 58 cents, or 0.8 per cent, to $70.94 a barrel by 0900 GMT, while U.S. West Texas Intermediate crude futures climbed 59 cents, 0.9 per cent, to $69.04.

Higher crude imports by China and expectations around U.S. President Donald Trump's announcement on Russia are supporting prices, UBS analyst Giovanni Staunovo said.

Donald Trump said on Sunday that he will send Patriot air defence missiles to Ukraine. He is due to make a "major statement" on Russia on Monday, having expressed his frustration with Russian President Vladimir Putin due to the lack of progress in ending the war in Ukraine.

In a bid to pressure Moscow into good-faith peace negotiations with Ukraine, a bipartisan U.S. bill that would hit Russia with sanctions gained momentum last week in Congress. European Union envoys, meanwhile, are on the verge of agreeing an 18th package of sanctions against Russia that would include a lower price cap. 

China's June oil imports increased 7.4 per cent on the year to 12.14 million barrels per day, reaching the highest since August in 2023, according to customs data released on Monday.

China is likely to continue stockpiling, but with storage at 95 per cent of the peak inventory build from 2020, these inventories are likely to emerge in "visible" Western market locations that are crucial for price formation, exerting downward pressure on prices, J.P. Morgan's research team said in a client note.

Last week, Brent rose 3 per cent, while WTI had a weekly gain of around 2.2 per cent, after the International Energy Agency said the global oil market may be tighter than it appears.

Investors are also eyeing the outcome of U.S. tariff talks with key trading partners.

European Union envoys are on the verge of agreeing an 18th package of sanctions against Russia that would include a lower price cap on Russian oil, four EU sources said after a Sunday meeting.