On Friday, the US Treasury announced sanctions against Russian oil producers Gazprom Neft and Surgutneftegas, intensifying its efforts to curtail Moscow’s revenue streams used to finance the war in Ukraine. The sanctions also extend to 183 vessels involved in shipping Russian oil, aiming to disrupt the country’s key economic sector and further pressure its ability to sustain the ongoing conflict.
Brent crude futures climbed $1.35, or 1.69%, to $81.11 a barrel by 2339 GMT after hitting an intraday high of $81.44, the highest since August 27.
Oil prices surged to their highest levels in over three months during Monday’s opening, driven by expectations that expanded US sanctions will significantly impact Russian crude supplies to major importers China and India. Brent crude futures rose by $1.35, or 1.69%, to $81.11 per barrel, peaking at an intraday high of $81.44, the highest since August 27. Similarly, US West Texas Intermediate (WTI) crude climbed $1.40, or 1.83%, to $77.97 per barrel, after reaching a high of $78.32, its highest since October 8.
The upward momentum follows the US Treasury’s announcement of sanctions on Russian oil producers Gazprom Neft and Surgutneftegas, along with 183 vessels used to ship Russian oil, aiming to cripple the revenue Moscow relies on to finance its war in Ukraine. The sanctions are expected to severely disrupt Russian oil exports, forcing major buyers like China and India to turn to suppliers in the Middle East, Africa, and the Americas. This shift is anticipated to elevate global oil prices and increase shipping costs, according to traders and analysts.