Globe`s oil rates increase on recent Russia sanctions
Date
1/19/2025 7:24:26 AM
(MENAFN) Global oil prices surged on Wednesday after the United States imposed new sanctions targeting Russia's oil sector, combined with a reduction in US crude inventories. brent crude futures climbed more than 2%, reaching $82.10 per barrel, the highest since August 2024, while US West Texas Intermediate (WTI) crude increased by over 3%, nearing $80 per barrel.
Since last Friday’s announcement of the sanctions by the Biden administration, Brent has risen by $5, and WTI has gained approximately $4. The drop in US crude inventories to their lowest levels since 2022, as reported by the US energy Information Administration, further supported the price rise.
However, Reuters noted that the oil rally was somewhat tempered by a ceasefire agreement between Hamas and Israel, signaling potential de-escalation in the Middle East.
The latest US sanctions target major Russian oil companies, including Gazprom Neft and Surgutneftegas, as well as dozens of vessels involved in Russian oil transport. According to a Reuters analysis, the sanctions are expected to impact 10% of the global oil tanker fleet, preventing many vessels from accessing key ports.
Moscow condemned the sanctions, calling them "illegal" and warning of destabilizing effects on global energy markets. The International Energy Agency (IEA) also expressed concern, highlighting potential disruptions to oil supply chains and further tightening of the global commodities market.
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