Oil prices jumped about 3 percent at the start of trade in Asian commodity markets today after fresh US sanctions against Russia’s Rosneft and Lukoil fueled supply concerns.
Around 03:45 (Greece time), the price of a barrel of North American oil of the WTI variety rose by 2.87% to $60.18 a barrel, while that of a barrel of Brent North Sea by 2.81% to $64.35.
The US Treasury Department announced the sanctions last night, citing Russia’s “lack of serious commitment” to a peace process to end the war in Ukraine.
Secretary Scott Bessent also urged US allies to “join us and adopt these sanctions.”
This decision brings to light the reasons why the US restored its strategic reserves at the beginning of the week: the administration (Trump) estimates that oil prices are at a level (…) sufficiently low to implement policies that could cause disruptions in global supply,” said Kyle Ronda, an analyst at Capital.com.
Russia ranks third in the world in crude production, behind the US and Saudi Arabia. It accounted for about 11% of global oil production last year.
The sanctions against Russian groups were announced as Washington steps up pressure on European countries, as well as India and Japan – major hydrocarbon importers – to stop buying energy from Russia, arguing that they are funding Vladimir Putin’s war in Ukraine.
Source: Skai
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