Black gold is rising in price as US sanctions are expected to affect Russian oil exports to China and India.
World oil prices continued to rise and reached their highest levels in the last four months. Brent oil rose above $81 a barrel, Reuters reported on Monday, January 13.
March Brent crude futures rose $1.47, or 1.84%, to $81.23 a barrel after hitting an intraday high of $81.49, their highest level since Aug. 27.
US WTI crude was up $1.55, or 2.02%, at $78.12 a barrel, after hitting a high of $78.39. This is the highest number since October 8.
In total, Brent and WTI have risen more than 6% since January 8, and both contracts have gained in price after the US Treasury imposed heavy sanctions on Russian oil last Friday. The new restrictions cover more than 400 individuals and organizations in Russia’s energy sector that directly or indirectly fund the Kremlin’s war machine. On the same day, Great Britain joined the sanctions.
Market participants predict that Russian oil exports will be hit hard by new sanctions that will force China and India, the largest and third largest oil importers, respectively, to source more more crude from the Middle East, Africa and the Americas, raising prices and shipments. cost.
“The latest round of OFAC (Office of Foreign Assets Control) sanctions targeting Russian oil companies and a large number of tankers will have implications for India in particular,” said Harry Chilinguirian, head of research at Onyx Capital Group.
JPMorgan analysts said Russia has some room despite the new sanctions, but will ultimately have to buy unsanctioned tankers or offer crude below $60 a barrel to use Western insurance to meet the price limit.
We remind you that Russia reduced oil exports to a 16-month low – volumes decreased by 540 thousand barrels per day compared to the highest level in October.
Source: korrespondent
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