Oil soars to four-month high on US sanctions on Russian crude

Oil soars to four-month high on US sanctions on Russian crude

Brent futures gained $1.68, or 2.1%, to $81.44 a barrel, after hitting their highest level since Aug. 27, $81.49.

He oil rose on Monday for the third consecutive session and the barrel of Brent It exceeded US$80, su maximum in more than four monthsdriven by the expansion of US sanctions on Russian crude oil and the expected effects on exports to its main buyers, India and China.

The futures of Brent earned US$1.68, or 2.1%, or US$81.44 per barrelafter touching its highest level since August 27, $81.49.

He West Texas Intermediate in the United States It improved by $1.84, or 2.4%, to $78.41 a barrel, after reaching its highest level since August 15, at $78.58.

He Brent and the WTI They have advanced almost 7% since January 8 and soared on Friday after the US Treasury Department imposed greater sanctions on Russian oil. The new sanctions include producers Gazprom Neft and Surgutneftegazas well as 183 ships that have transported Russian crude oil, pointing to the revenue that Moscow has used to finance its war with Ukraine.

Russian oil exports will be severely affected by new sanctionswhich will push China and India to supply more crude oil from the Middle East, Africa and Americaa, skyrocketing prices and transportation costs, traders and analysts said.

Supply problems, what the market anticipates

“The market fears that supply will be interrupted. Worst case scenario for Russian oil seems realistic“said Tamas Varga, an analyst at PVM. “But it is not clear what will happen when Donald Trump takes office next Monday.”

The sanctions include a relief period until March 12, so there may not be major disruptions yet, Varga added.

Goldman Sachs estimated that the vessels targeted by the new sanctions carried 1.7 million barrels per day of oil in 2024, or 25% of Russian exports. The bank increasingly expects its forecast for a $70-$85 Brent range to tilt higher, its analysts wrote in a note.

Source: Ambito

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