Brent crude oil futures jumped more than 2% to $81.5 per barrel on Monday, reaching their highest level in over four months, as new US sanctions on Russia’s energy sector raised fears of supply disruptions.
Brent oil surges on US sanctions and supply fears
The most extensive sanctions target major exporters, insurers, and over 150 tankers, leaving key buyers like India and China scrambling for alternatives. The measures have already confused, with Chinese refiners holding emergency meetings and Indian refiners bracing for potential months of disruption. Early signs of disruption include sanctioned tankers stranded off China, with analysts estimating that up to 800,000 barrels per day of Russian oil could be affected.
Oil prices rise on US stockpile drop and Iran sanctions
However, the actual loss may be more minor. Contributing to the price rally are declining US stockpiles, colder weather, and speculation that the incoming Trump administration may impose stricter sanctions on Iran.
