Oil Prices Rise Amid Expectations of Impact from U.S. Sanctions on Russian Supplies
Oil prices climbed for the third consecutive session on Monday, with Brent crude surpassing $80 per barrel, marking its highest level in over four months. This surge is supported by expectations of significant U.S. sanctions affecting the Russian oil sector and their anticipated impacts on exports to major importers like China and India.
Price Movements
Brent crude futures rose by 71 cents, or 0.9%, to $80.47 per barrel by 14:24 GMT, after hitting a daily high of $81.68, the highest since August 27.
U.S. West Texas Intermediate (WTI) crude increased by 94 cents, or 1.2%, to $77.51 per barrel, having touched a high of $78.58, the highest price since August 15.
Since January 8, both Brent and WTI have jumped by about six percent, further escalating on Friday after the U.S. Treasury imposed new sanctions on Russian oil producers Gazprom Neft and Surgutneftegas, along with 183 vessels involved in shipping Russian oil. These actions target revenues Moscow uses to fund its war in Ukraine.
Traders and analysts suggest that Russian oil exports will be significantly disrupted due to these
new U.S. sanctions, compelling major buyers like China and India to source more oil from the
Middle East, Africa, and the Americas, which will increase prices and shipping costs.

Tamas Varga, an analyst at PVM, stated, “There are genuine fears in the market about supply
disruptions. The worst-case scenario for Russian oil seems to be the realistic one… But it’s
unclear what will happen when President-elect Donald Trump takes office next Monday.”
Varga added that the sanctions include a grace period until March 12 for the wind-down of
activities, suggesting that no major disruptions should be expected immediately.
Harry Tchilinguirian, Head of Research at Onyx Capital Group, commented, “The latest round of
sanctions by the Office of Foreign Assets Control targeting Russian oil companies and a very
significant number of tankers will have dire consequences, especially for India.”
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