UBS stated on Thursday that the latest U.S. and EU sanctions on Russian energy companies may cause short-term fluctuations in oil prices. However, the bank noted that a lasting rally is unlikely, as the global market remains well supplied.
According to UBS, Brent crude prices are expected to stay within the $60 to $70 per barrel range. The report highlighted that previous rounds of sanctions had minimal impact on Russian export volumes, with oil flows continuing through alternative trade routes.
UBS also advised investors to closely monitor sanction enforcement and watch for potential supply adjustments from other major producers in response to changing market dynamics.
