Oil Prices Surge Amid New US Sanctions on Russia

By Staff, Agencies

Global oil prices climbed sharply on Wednesday following the announcement of a fresh US sanctions package targeting Russia's oil industry. This surge was further bolstered by a significant decline in US crude stockpiles.

Brent crude futures saw an over 2% increase, reaching $82.10 per barrel – the highest since August 2024 – while US West Texas Intermediate [WTI] crude surged more than 3%, approaching $80 per barrel.

Since Friday, when the Biden administration unveiled the sanctions, Brent has gained approximately $5, and WTI has risen by about $4, according to data from Investing.com.

Adding to the price momentum, US crude oil inventories last week dropped to their lowest levels since 2022, as reported by the US Energy Information Administration.

However, a ceasefire agreement between Hamas and “Israel”, which signaled a potential easing of tensions in the Middle East, limited the upward trend.

The sanctions, aimed at major Russian oil companies like Gazprom Neft and Surgutneftegas, also targeted dozens of vessels involved in Russian oil transportation.

According to a Reuters analysis, the measures could impact 10% of the global oil tanker fleet, leaving many unable to access major ports.

Russia condemned the sanctions as “illegal,” with Kremlin spokesperson Dmitry Peskov warning of potential destabilization in global energy markets.

Russian Foreign Ministry spokeswoman Maria Zakharova criticized the Biden administration, claiming its actions would define the president's legacy as chaotic.

The International Energy Agency [IEA] issued a warning on Wednesday, stating that these sanctions could significantly disrupt global oil supply chains and further tighten the commodities market.