Today at 20:04
Brent crude rose above $81 a barrel after rising nearly 4% in the previous session. West Texas Intermediate was near $78.
The sweeping measures, adopted less than two weeks before Donald Trump takes office, have focused attention on key markets in India and China, where refiners will be forced to seek alternative sources of supply. India has become a major buyer of Russian oil after February 2022, while China is the world’s largest oil importer.
Oil prices have been rising in recent weeks, helped by a cold snap, a drawdown in US inventories and speculation that the Trump administration could tighten restrictions on supplies from Iran in the coming months.
The Biden administration’s sweeping sanctions package threatens to cause further disruption, potentially upending the market framework for OPEC+ as the alliance plans to begin easing output curbs later this year after a series of delays, the report said.
The price surge could also pose a challenge to central banks, including the Federal Reserve, if it leads to rising inflation.
However, it remains unclear how the restrictions will affect actual oil flows for producers, shippers, traders and users.
Citigroup Inc. said it could hit up to 30% of Russia’s so-called shadow tanker fleet. That would put up to 800,000 barrels per day at risk, although actual losses could be less than half that figure.
Goldman Sachs Group Inc. said it had not changed its expectations for Russian supply as oil prices could fall further to encourage purchases.
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