Oil prices surge 3% after new US sanctions on Russian oil sector

January 11, 2025 / 12:13 AM

Sharjah 24 – Reuters: Oil prices jumped nearly 3% on Friday, reaching their highest levels in three months, as traders anticipated supply disruptions following a new US sanctions package targeting Russia's oil and gas industry.

US sanctions on Russian oil producers

The Biden administration introduced new sanctions on Russian oil producers, tankers, brokers, traders, and ports, aiming to disrupt all stages of Russian oil production and distribution.

Brent Crude surpasses $80 per barrel

Brent crude futures rose by $2.31, or 3%, to $79.23 a barrel by 17:03 GMT, briefly surpassing $80 per barrel for the first time since October 7.

West Texas intermediate crude hits three-month high

US West Texas Intermediate crude futures also gained $2.23, or 3%, reaching $76.15, marking a three-month high.

Impact on Russian oil exports

Sources within the Russian oil and Indian refining sectors indicated that the sanctions would significantly disrupt Russian oil exports to key buyers, including India and China.