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SINGAPORE/BEIJING: Oil prices were little changed on Monday as traders assess the impact of new European sanctions on Russian oil supplies while they also worry about tariffs possibly weakening fuel demand as Middle East producers are raising output.

Brent crude futures dropped 10 cents to $69.18 a barrel by 8:55 a.m. Saudi time, after settling 0.35 percent lower on Friday. US West Texas Intermediate crude was at $67.33 a barrel, down 1 cent, following a 0.30 percent decline in the previous session.

The European Union approved on Friday the 18th package of sanctions against Russia over the conflict in Ukraine, which also targeted India’s Nayara Energy, an exporter of oil products refined from Russian crude.

Kremlin spokesperson Dmitry Peskov said on Friday that Russia had built up a certain immunity to Western sanctions.

The EU sanctions followed US President Donald Trump’s threats last week to impose sanctions on buyers of Russian exports unless Russia agrees to a peace deal in 50 days.

ING analysts said the lack of reaction showed the oil market is not convinced by the effectiveness of these sanctions.

“However, the part of the package likely to have the biggest market impact is the EU imposing an import ban on refined oil products processed from Russian oil in third countries,” the analysts led by Warren Patterson said.

“But clearly, it will be challenging to monitor crude oil inputs into refineries in these countries and, as a result, enforce the ban.”

Iran, another sanctioned oil producer, is due to hold nuclear talks in Istanbul with Britain, France and Germany on Friday, an Iranian Foreign Ministry spokesperson said on Monday. That follows warnings by the three European countries that a failure to resume negotiations would lead to international sanctions being reimposed on Iran.

In the US, the number of operating oil rigs fell by two to 422 last week, the lowest since September 2021, Baker Hughes said on Friday.

US tariffs on European Union imports are set to kick in on August 1, although US Commerce Secretary Howard Lutnick said on Sunday he was confident the United States could secure a trade deal with the bloc.

“US tariff concerns will continue to weigh in the lead up to August 1 deadline, while some support may come from oil inventory data if it shows tight supply,” IG market analyst Tony Sycamore said.

“It feels very much like a $64-$70 range in play for the week ahead.”

Brent crude futures have traded between a low of $66.34 a barrel and a high of $71.53 after a ceasefire deal on June 24 halted the 12-day Israel-Iran war.

RIYADH: ������Ƶ has granted a low-cost airline license to an Air Arabia-led consortium, aiming to boost air connectivity, create jobs, and upgrade transport in the Eastern Province. 

The new carrier, a joint venture between the UAE-based budget airline, KUN Investment Holding, and Nesma, will be headquartered at Dammam’s King Fahd International Airport. It is expected to operate both domestic and international routes, helping expand access and competition in the Kingdom’s growing aviation market. 

According to the General Authority of Civil Aviation, the new airline aims to serve 24 domestic and 57 international destinations, transporting around 10 million passengers annually. Its operations will be supported by a fleet of 45 aircraft and are projected to create more than 2,400 direct jobs, aligning with ������Ƶ’s Vision 2030 goals to boost the non-oil economy and local employment. 

In a statement, GACA stated: “This move aims to enhance air connectivity in the Eastern Province, increase seat capacity, and provide passengers with competitive options.”  

The announcement comes as part of broader efforts to transform ������Ƶ into a regional aviation hub. The country plans to handle 330 million passengers and transport 4.5 million tons of air cargo annually by 2030, under the National Strategy for Transport and Logistics Services. 

As part of this strategy, Eastern Province Gov. Prince Saud bin Naif bin Abdulaziz also inaugurated the master plans for King Fahd International, Al-Ahsa, and Al-Qaisumah airports, alongside a new corporate identity for Dammam Airports Co. The governor also launched a SR1.6 billion ($426 million) development package covering 77 infrastructure projects to improve passenger experience and airport services.   

King Fahd International Airport handled 12 million passengers in 2024, up 15 percent from the previous year, with over 99,000 flights recorded, according to data from Dammam Airports Co. The airport also set a daily passenger traffic record, surpassing 50,000 travelers in a single day for the first time.  

With air traffic steadily rising and infrastructure rapidly expanding, the introduction of a new budget airline based in Dammam is expected to solidify the region’s position as a key aviation gateway and support ������Ƶ’s ambitions to lead the Middle East civil aviation sector by the end of the decade.