Oil jumps by more than $1/bbl on fresh US sanctions on Russia
Nurluqman Suratman
13-Jan-2025
SINGAPORE (ICIS)–Oil prices surged by more than $1/barrel on Monday on supply disruption concerns following latest round of US sanctions against Russia’s energy sector.
Product | Latest | Previous | Change |
Brent March | 81.26 | 79.76 | 1.50 |
WTI February | 78.14 | 76.57 | 1.57 |
The new sanctions, imposed on 10 January, mark the US’ most sweeping measures yet, targeting major Russian oil exporters, insurance firms, and more than 150 tankers.
“The United States is taking sweeping action against Russia’s key source of revenue for funding its brutal and illegal war against Ukraine,” US treasury secretary Janet Yellen had said on 10 January.
“With today’s actions, we are ratcheting up the sanctions risk associated with Russia’s oil trade, including shipping and financial facilitation in support of Russia’s oil exports.”
The US Department of State said that is also taking steps to reduce Russia’s energy revenues by blocking two active liquefied natural gas (LNG) projects, a large Russian oil project, and third-country entities supporting Russia’s energy exports.
Russia’s foreign ministry on 11 January denounced the US sanctions against its energy sector, saying that it would respond to the country’s “hostile” actions.
Crude prices have surged in recent weeks, driven by winter demand, falling US stockpiles, and speculation that the incoming Donald Trump administration in the US will tighten sanctions on Iranian oil exports.
Meanwhile, Texas refineries are bracing for an onslaught of cold, snow and freezing rain as the first major winter storm sweeps the southern region of the US, with January this year projected to be the coldest in 11 years.
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