Published by Global Banking and Finance Review
Posted on October 23, 2025
1 min readLast updated: January 21, 2026
UBS anticipates short-term volatility in oil prices from new US sanctions, but oversupply may limit a sustained rally. Brent crude likely to stay $60-$70.
(Reuters) -UBS said on Thursday that fresh U.S. and EU sanctions targeting Russian energy firms could introduce short-term volatility to crude prices but are unlikely to spark a sustained rally due to oversupply in the global oil market.
The bank forecasts Brent crude prices to remain in the $60-$70 per barrel range, adding that previous sanctions had little effect on Russian export volumes, as oil continued to move via alternative channels.
"We recommend that investors monitor enforcement and potential supply responses from other producers," UBS said.
(Reporting by Anmol Choubey in Bengaluru; Editing by Susan Fenton)
Brent crude is a major trading classification of crude oil originating from the North Sea. It serves as a benchmark for oil prices globally and is used to price two-thirds of the world's crude oil.
Sanctions are penalties or restrictions imposed by one country or group of countries on another, often to influence behavior or policies. They can include trade restrictions, financial penalties, or other economic measures.
Oversupply in the oil market occurs when the supply of oil exceeds demand. This can lead to lower prices and can affect the profitability of oil producers.
Crude oil is a naturally occurring, unrefined petroleum product composed of hydrocarbon deposits and other organic materials. It is a primary source of energy and is refined into various products like gasoline and diesel.
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