With Russia’s exports affected by US sanctions, oil is at its highest level in 3 months

US West Texas Intermediate crude increased $1.40, or 1.83%, to $77.97 per barrel after touching the highest level at $78.32, the highest price since October 8.

On Friday, the US Treasury Department imposed new sanctions on Russian oil producers Gazprom Neft and Surgut Oil and Gas, as well as 183 tankers involved in shipping Russian oil, targeting revenues that Moscow uses to finance its war against Ukraine.

Traders and analysts said that Russian oil exports will be severely affected by the new US sanctions, which will push main buyers China and India to obtain more oil from the Middle East, Africa and the Americas, which will increase prices and shipping costs.

“The latest round of OFAC sanctions targeting Russian oil companies and a very large number of tankers will have serious consequences for India in particular,” said Harry Tchilinguirian, head of research at Onyx Capital Group.


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