Oil prices have surged for the third consecutive session, reaching their highest in over four months. Brent crude futures rose above $81 a barrel, driven by US sanctions against Russian oil exports to top buyers China and India. The new sanctions are expected to severely impact Russian oil exports, pushing these countries to source more crude from other regions, which will boost prices and shipping costs.
US Treasury officials have imposed wider sanctions on Russian oil producers and 183 vessels that ship Russian oil. These measures target the revenue used by Moscow to fund its war with Ukraine. Analysts predict that this will lead to increased uncertainty in the global energy market, particularly in the first quarter.
The impact of these sanctions is expected to be felt globally, with China and India being major beneficiaries. The doubling of tankers sanctioned for moving Russian barrels could pose a significant logistical challenge to post-invasion crude flows.
With US sanctions taking effect, oil prices are likely to remain under pressure as global demand continues to rise.
Source: https://www.reuters.com/business/energy/oil-hits-more-than-3-month-high-us-sanctions-hit-russia-exports-2025-01-12