Oil prices surged 2% amid expanded US sanctions on Russian exports
The United States implemented its most stringent and comprehensive sanctions on Russia’s oil sector last week, targeting major exporters, insurance providers, and over 150 tankers.
Oil prices surged by approximately 2% to reach a four-month high on Monday, January 13, propelled by expanded US sanctions on Russian oil exports, which may lead to significant global supply disruptions.
Brent futures rose by $1.25 to settle at $81.01/barrel.
WTI edged up by $2.25 to close at $78.82/barrel.
The United States implemented its most stringent and comprehensive sanctions on Russia’s oil sector last week, targeting major exporters, insurance providers, and over 150 tankers. Industry analysts estimate that the vessels affected by these sanctions collectively transport approximately 1.7 million barrels per day (bpd) of oil in 2024 equivalent to 25% of Russia's total exports, further amplifying concerns over potential global supply constraints.
Tempering the price increase, the US dollar appreciated to a 26-month high against other major currencies following the recent US job report. A stronger dollar typically curtails energy demand by rendering dollar-denominated commodities expensive to international buyers.
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Written by: Muhammad Hafiz