New York (TIP)- Oil prices rose sharply in early Asian trade on Thursday, Oct 23, after U.S. President Donald Trump announced sanctions on Russia’s largest oil companies, a move that stands to potentially crimp global supplies.
The development helped crude prices recover further from five-month lows hit earlier this week, with positive U.S. inventory data also providing support.
Brent oil futures for December jumped as much as 3% to $64.44 a barrel, while West Texas Intermediate crude futures rose 3% to $60.26 a barrel.
Both contracts were trading up about 2.8% by 23:38 ET (03:38 GMT).
Trump hits Russia’s Lukoil, Rosneft with sanctions
Trump’s Treasury Department on Wednesday unveiled sanctions against Lukoil and Rosneft, Russia’s two biggest oil companies, and called for an immediate ceasefire with Ukraine.
Treasury Secretary Scott Bessent said the companies funded “the Kremlin’s war machine,” and that the Treasury was prepared to take more action against Moscow.
The sanctions now stand to block a chunk of global oil supplies, and helped ease concerns over a looming supply glut.
Wednesday’s announcement also marks a pivot in Trump’s stance on Russia, who had so far not imposed any direct sanctions on the country in his second term.
Trump had earlier this year attempted to pressure major buyers of Russian oil– India and China– and had slapped steep trade tariffs on New Delhi over its purchases of Russian oil.
Recent reports said India was displaying some willingness to end its Russian oil buying, and could seek crude from other sources.
The latest round of U.S. sanctions could also push flows of cheap Russian oil to Indian refiners to near zero, Bloomberg reported on Thursday, citing industry executives.
Separately, the European Union also imposed fresh sanctions on Russia, targeting Moscow’s shadow fleet of tankers while also banning all Russian liquefied natural gas imports.
“We must wait and see if these latest sanctions are more effective or if Russia can circumvent them, as it did with curbs earlier this year,” ING analysts wrote in a note.
But they noted that regardless, the latest sanctions represented a pivot in U.S. policy on Russia, and increased the risk of more sanctions on Moscow and its oil customers, especially if little progress was made towards a Russia-Ukraine peace deal.
US inventory draw supports oil prices
Oil prices recovered from five-month lows hit earlier this week after data showed U.S. inventories unexpectedly shrank in the week to October 17.
Inventories shrank by 0.96 million barrels, against expectations for a 2.2 million barrel build. Draws in gasoline and distillate stockpiles also helped spur some optimism over demand in the world’s largest fuel consumer.
Markets are now seeking more cues on the U.S. economy from key consumer inflation data for September.
Concerns over the U.S. economy and fuel demand were a key weight on oil prices in recent weeks. Simmering U.S.-China trade tensions and a strong dollar had also weighed on oil.
Oil prices surge nearly 3% after Trump slaps sanctions on top Russian oil firms
Comments
23 responses to “Oil prices surge nearly 3% after Trump slaps sanctions on top Russian oil firms”
-
Some really nice and useful information on this website, also I conceive the design and style contains superb features.
-
**boostaro reviews**
Boostaro is a purpose-built wellness formula created for men who want to strengthen vitality, confidence, and everyday performance.
-
**herpafend**
Herpafend is a natural wellness formula developed for individuals experiencing symptoms related to the herpes simplex virus. It is designed to help reduce the intensity and frequency of flare-ups while supporting the bodys immune defenses.
-
You made some clear points there. I looked on the internet for the issue and found most people will agree with your site.
-
Thoroughly enjoyed this read.. Loved the way you summarized key points. 馃檪
-
Normally I don’t read post on blogs, however I wish to say that this write-up very forced me to check out and do it! Your writing style has been surprised me. Thank you, quite nice article.
-
Learned something new today!. This made my day a little easier. 馃檪
-
I really appreciate this post. I have been looking everywhere for this! Thank goodness I found it on Bing. You’ve made my day! Thanks again!
-
I have been exploring for a little bit for any high-quality articles or blog posts in this sort of area . Exploring in Yahoo I at last stumbled upon this site. Studying this info So i am happy to express that I’ve an incredibly good uncanny feeling I discovered exactly what I needed. I so much definitely will make sure to do not disregard this website and provides it a look regularly.
-
Rattling nice design and great content material, nothing else we need : D.
-
I’ve recently started a site, the info you provide on this website has helped me greatly. Thanks for all of your time & work.
-
What i do not understood is in fact how you are not actually a lot more well-appreciated than you might be now. You’re so intelligent. You already know therefore significantly in terms of this topic, produced me personally believe it from numerous various angles. Its like women and men are not fascinated unless it is something to accomplish with Girl gaga! Your personal stuffs outstanding. All the time care for it up!
-
Hello my friend! I wish to say that this article is amazing, nice written and include approximately all significant infos. I would like to see more posts like this.
-
I have been exploring for a little bit for any high-quality articles or blog posts on this kind of area . Exploring in Yahoo I at last stumbled upon this site. Studying this info So i’m glad to convey that I’ve an incredibly good uncanny feeling I found out exactly what I needed. I so much for sure will make certain to do not overlook this site and provides it a look on a continuing basis.
-
I like this web site because so much utile material on here : D.
-
I was reading some of your articles on this website and I conceive this site is real informative ! Keep putting up.
-
I¦ve been exploring for a little bit for any high-quality articles or weblog posts in this sort of house . Exploring in Yahoo I at last stumbled upon this website. Studying this info So i¦m glad to express that I’ve an incredibly good uncanny feeling I found out just what I needed. I so much no doubt will make sure to don¦t overlook this web site and provides it a glance on a relentless basis.
-
Howdy, i read your blog occasionally and i own a similar one and i was just wondering if you get a lot of spam remarks? If so how do you reduce it, any plugin or anything you can recommend? I get so much lately it’s driving me insane so any help is very much appreciated.
-
I used to be more than happy to seek out this web-site.I wished to thanks to your time for this excellent learn!! I undoubtedly having fun with each little bit of it and I’ve you bookmarked to check out new stuff you blog post.
-
I like the valuable info you provide in your articles. I will bookmark your blog and check again here regularly. I’m quite certain I will learn plenty of new stuff right here! Best of luck for the next!
-
I don’t even understand how I finished up right here, but I assumed this publish was once good. I don’t realize who you’re but definitely you’re going to a well-known blogger if you are not already ;) Cheers!
-
Everything is very open and very clear explanation of issues. was truly information. Your website is very useful. Thanks for sharing.
-
Hello, i believe that i saw you visited my website so i got here to “go back the prefer”.I’m attempting to to find issues to enhance my web site!I guess its adequate to use a few of your ideas!!
Leave a Reply