Oil stable as investors balance oversupply worries with sanctions risks

By Robert Harvey

LONDON (Reuters) -Oil prices were unchangeable connected Tuesday, arsenic oversupply concerns balanced uncertainty implicit the interaction of the latest U.S. ​sanctions connected Russian oil.

Brent crude futures roseate 27 cents, oregon 0.42%, ‌to $64.33 a tube by 0922 GMT. U.S. West Texas Intermediate crude was astatine $60.39 a ‌barrel, up 26 cents, oregon 0.43%.

Investors proceed to measure the fallout of the U.S. sanctions connected Russia, and their interaction connected some crude lipid and refined substance markets.

Lukoil declared unit majeure astatine an Iraqi lipid tract it operates, sources told Reuters connected Monday, marking the ⁠biggest fallout yet from the sanctions imposed ‌last month.

Restricted substance exports arsenic a effect of the sanctions are propping up lipid prices successful the look of a crude lipid glut, PVM expert Tamas ‍Varga said.

"Fresh U.S. sanctions connected large Russian lipid producers and exporters are weighing connected merchandise exports. As a result, heating oil/gasoil and RBOB gasoline are moving successful a antithetic absorption from crude,"​ helium said.

European diesel refining margins are astir 21-month highs of adjacent to $31 per ‌barrel, portion European gasoline nett margins are astatine their highest successful 18 months of astir $21 per barrel. [PRO/E]

Worries astir crude oversupply are keeping a lid connected lipid prices.

"As OPEC accumulation increases grind on, planetary lipid balances are acquiring an progressively bearish hue connected the proviso broadside of the ledger with request inactive trending little successful conjunction with a slowed economical maturation way among ⁠major oil-consuming countries," analysts astatine vigor advisory ​firm Ritterbusch and Associates said successful a note.

Earlier this month,​ OPEC+ agreed to summation December output targets by 137,000 barrels per day, but besides agreed to a intermission successful increases successful the archetypal 4th of adjacent ‍year.

Additionally, the measurement ⁠of lipid stored onboard ships successful Asian waters doubled successful caller weeks aft tightening Western sanctions deed exports to China and India, analysts said.

Otherwise, wider markets saw enactment arsenic the ⁠longest authorities shutdown successful U.S. past could extremity this week aft the Senate approved a compromise that would reconstruct ‌federal funding.

(Reporting by Robert Harvey successful London, Ashitha Shivaprasad successful ‌Bengaluru and Emily Chow successful SingaporeEditing by Frances Kerry)