WTI trades around $77.00, reaches three-month highs following US sanctions on Russian Oil
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WTI price reached $77.46, a level not seen since October 8, on Monday.
Oil prices have surged amid escalating concerns over potential supply disruptions triggered by US sanctions on Russia's oil industry.
US Treasury targeted producers Gazprom Neft and Surgutneftegas, disrupting Russia's ability to supply Oil to China and India.
West Texas Intermediate (WTI) Oil price extends its gains for the third consecutive session, hovering around $77.00 per barrel, near $77.46—levels not seen since October 8—during the Asian trading hours on Monday. Crude Oil prices continue to climb amid growing concerns over potential supply disruptions triggered by new US sanctions on Russian Oil.
On Friday, the US Treasury introduced broader sanctions on Russian Oil, targeting producers Gazprom Neft and Surgutneftegas, as well as 183 vessels involved in transporting Russian Oil. These restrictions are expected to significantly disrupt Russia's ability to supply Oil to key markets like China and India, compelling these countries to explore alternatives in regions such as the Middle East, Africa, and the Americas.
RBC Capital analysts, as reported by Reuters, noted in a statement, "The new Russian sanctions from the outgoing administration represent a net addition to at-risk supply, introducing more uncertainty to the first-quarter outlook." The latest round of sanctions targets ships involved in 1.5 million barrels per day of seaborne Russian crude oil activity on average in 2024. This includes 750,000 bpd of exports to China and 350,000 bpd to India.
Additionally, Oil demand has risen following a stronger-than-expected US jobs report released on Friday, which signaled economic strength. In recent weeks, crude prices have been further supported by increased winter energy demand, declining US inventories, and speculation surrounding the policies of President-elect Donald Trump's incoming administration.
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