(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.