Oil prices rose by more than $1 per barrel on Thursday, extending gains from the previous session, after the United States imposed sanctions on Russian oil companies Rosneft and Lukoil over the Ukraine war.
Brent crude futures were up by $1.76, or 2.81 per cent, at $64.35 by 0041 GMT, and US West Texas Intermediate crude futures were up $1.68, or 2.87 per cent, at $60.18.
The US said it was prepared to take further action as it called on Moscow to agree immediately to a ceasefire in its war in Ukraine. US President Donald Trump had not previously put sanctions on Russia over the war, relying instead on trade measures.
“Given President Putin’s refusal to end this senseless war, Treasury is sanctioning Russia’s two largest oil companies that fund the Kremlin’s war machine,” Treasury Secretary Scott Bessent said in a statement.
Britain sanctioned Rosneft and Lukoil last week. Separately, EU countries approved a 19th package of sanctions against Russia for the war that includes a ban on imports of Russian LNG.
“While the sanction news has buoyed the crude oil price, the rise thus far has been relatively modest because past sanction/tariff threats have been diluted or delayed and also by the difficulties of enforcing the sanctions,” said Tony Sycamore, a market analyst at IG.
Right after the US sanctions were announced, Brent and WTI futures rose by more than $2 a barrel, boosted as well by growing US energy demand.
Last week, the US called on Japan, also a major buyer of Russian LNG, to halt its energy imports from Russia ahead of Trump’s upcoming visit to Asia and as Washington is increasing pressure on the region to phase out Russian supplies.
